- Tesla has postponed the unveiling of its Robotaxi to October to allow more time for prototype development.
- The delay sent Tesla’s shares down 8.4%, their biggest drop since January.
OUR TAKE
Tesla has delayed the unveiling of its much-anticipated robot taxi from 8 August to October, as it needs more time to refine the vehicle’s prototypes. The decision follows a spike in Tesla’s market value in anticipation of the event, which saw its shares fall 8.4%, their biggest drop since January. The shift reflects ongoing challenges in Tesla’s ambition to revolutionise transport with autonomous taxis, a vision Elon Musk has been promoting for years, although current models such as full self-driving require active supervision.
–Heidi Luo, BTW reporter
What happened
Tesla has postponed the launch of its Robotaxi from 8 August to October in order to give the team more time to refine the vehicle’s design and build more prototypes. The internal announcement came after CEO Elon Musk had previously set the August date, which sparked a significant rally in Tesla’s shares, adding more than $257 billion to the company’s market valuation during an 11-day winning streak.
The delay has led to the biggest drop in Tesla’s share price since January, with shares down 8.4% on Thursday. Meanwhile, competitors in the ride-sharing market, such as Uber Technologies and Lyft, saw their shares rise 6.1% and 4.6% respectively as investors reacted to Tesla’s announcement.
The decision to delay the robotaxi event underscores the complex nature of developing autonomous vehicles that meet Tesla’s high standards and regulatory approval. This development comes as Tesla is experiencing a slowdown in vehicle sales and production, including a 6.6% decline in deliveries and a 14% decline in production in the first half of the year compared to the same period last year.
Also read: Robotaxis: Are autonomous taxis our future?
Also read: Who is building robotaxis?
Why it’s important
Tesla has long been committed to pioneering an autonomous taxi service, a vision Elon Musk detailed in his 2016 “master plan”. More recently, Musk has increased his focus on this project, alongside efforts to develop more affordable electric vehicles such as the Model 3 sedan.
The challenge of developing self-driving technology is significant, as it involves complex AI innovations to enable vehicles to navigate more safely than humans. Despite the complexities involved and the need for constant supervision, Musk remains committed to Tesla’s “Full Self-Driving” (FSD) technology, which is marketed as capable of full autonomy but still requires driver supervision.
Experts believe that mass adoption of such technology in the real world could be decades away. Steve Sosnick of Interactive Brokers highlights Tesla’s speculative appeal: “Tesla has always traded on hopes and dreams. If you believe in Elon Musk’s vision, the company’s lofty valuation may seem justified, even though it trades at nearly 100 times earnings”.
