#01
Tesla's Robotaxi Event: More Promises Than Details
A maverick billionaire stepped onto the stage—accompanied by a humanoid robot—to unveil what he claimed would be world-changing technology. The vision was met with cheers, skepticism, and fear, reminiscent of a scene from a Hollywood movie. But tonight, this scenario was real, happening at Warner Bros. Studios in Burbank, California.
The event, titled "We, Robot," was a nod to Isaac Asimov's classic short story collection that explores the ethical dilemmas of creating robots increasingly human-like. For Elon Musk, an entrepreneur frequently haunted by unmet promises, Tesla's highly anticipated Robotaxi launch marked yet another ambitious to-do list.
On Thursday night, Musk drove a sleek, silver two-door prototype, the "Cyber cab," through the streets of Warner Bros. Studios. He pledged that Tesla’s popular Model 3 and Model Y would achieve full self-driving capabilities by next year in California and Texas.
Musk promised that fully autonomous Cyber cabs would go into production by 2026, priced at under $30,000. He also revealed a RoboVan, capable of transporting 20 passengers, claiming it would reshape cities by "turning parking lots into parks."
Later, Tesla introduced humanoid robots that could interact with people, even serving drinks at a bar. Musk stated that these robots would eventually sell for $20,000 to $30,000 each, calling them “the greatest product of all time.”
Tesla aims to outpace competitors like Alphabet's Waymo by adopting a lower-cost, vision-only approach to self-driving technology. Musk believes this will allow Tesla to scale its autonomous vehicle fleet faster than rivals.
However, Tesla's strategy, while simpler and cheaper, has major flaws. The most significant is that the AI-based self-driving system struggles to explain the cause of accidents or failures, which raises concerns with regulators. Competitors, such as Waymo, use similar AI and camera technology but include redundant systems and more expensive lidar sensors for added safety.
Thursday's electronic dance music-filled spectacle was quintessentially Musk, but some Tesla investors and experts left wanting more concrete details. They sought a clearer business plan for Tesla’s evolution from an automaker to a leader in autonomous driving and AI. By early trading on Friday, Tesla shares had fallen nearly 8%. The stock has been hit hard in recent years over fears of cheap electric car competitors eroding Tesla's market share. Since Musk's announcement of a shift to robotaxis in April, Tesla’s stock had risen by nearly 50%, though it's still down 8% over the past year.
Musk’s vision is grand, but someone must make it a reality. More investors and consumers are hoping the company will soon release a more traditional, affordable mass-market vehicle, the Model 2. As competition in the EV market intensifies, Tesla must focus on selling more electric cars.
Musk calls self-driving taxis key to Tesla's future profits
Tesla’s primary income comes from selling electric vehicles, with profit margins that have consistently remained in the double digits—a remarkable feat for an automaker. However, Musk is eyeing much higher profits from the software industry.
Tesla also sells an expensive software package, “Full Self-Driving (Supervised),” that can autonomously navigate most roads, passing traffic lights, stop signs, and pedestrians with little human intervention. However, the system occasionally requires human control, meaning it’s not truly autonomous.
Musk believes demand for software will surge once cars achieve full autonomy, allowing people to earn money by renting out their vehicles—essentially creating an autonomous Uber or Lyft fleet. “The value of a fully electric autonomous fleet is immense—truly mind-boggling,” he told investors. “It will be one of the most valuable things in history.”
He’s been promising it’s just around the corner for years
Musk is notorious for his overly optimistic timelines regarding when Tesla’s self-driving taxis will be a reality—and he’s even joked about his misjudgments.
- In 2019, Musk declared, “By next year, we’ll have over a million robotaxis on the road.”
- In 2020, he said, “I think we’ll see robotaxis in operation next year… though not in all markets.”
- In 2021: “I’m very confident that this year, the reliability of autonomous driving will surpass that of humans.”
- In 2022: “If we don’t achieve full self-driving safer than humans this year, I’ll be shocked.”
- In 2023: “I know I’ve been the boy who cried ‘full self-driving,’ but boy, I think—by the end of this year, our cars will be more advanced than humans.”
- This summer: “Obviously, I’ve been too optimistic in my past predictions... but next year seems very likely to me.”
The issue is that while Tesla’s software can drive the car most of the time without human assistance, it isn’t reliable enough to handle all situations autonomously. Meanwhile, companies like Alphabet’s Waymo and GM’s Cruise already have driverless taxis on the road—although Cruise reintroduced human “safety drivers” after accidents last year, and systems typically have remote assistance on standby. According to data Waymo provided to California, it logged nearly 1.2 million fully autonomous miles last year, with only 14 instances where human intervention was required.
Musk has chosen to build a system based solely on relatively inexpensive cameras, without the radar and costly high-tech sensors others use. He also employs “end-to-end learning,” where AI learns to drive from raw data, while other companies incorporate human-designed rules and safeguards into their systems.
Musk’s approach requires billions in upfront AI investments, but the cost of car hardware is much lower. This combination is expensive now, but if millions of autonomous taxis hit the road, the payoff could be enormous.
Tesla’s favored approach is a "train and pray" method—feeding more data into the system to solve problems. However, in safety-critical industries, this poses challenges. Confidence and proof are needed to ensure issues are resolved, such as concerns that the system learns proper driving behavior, not bad habits like running red lights, and that there are adequate checks and balances in place.
#02
Cybercab and Robovan Technical Analysis
Design Features
The Cybercab boasts a sporty, two-door coupe design. Compared to the sleek lines of the Model 3 and Model Y, it has a more angular, polygonal aesthetic. It features butterfly doors and fully enclosed wheel covers. Its front is equipped with a single light bar running across, reminiscent of the Cybertruck, and the entire exterior is made of the same stainless steel exoskeleton material as the Cybertruck.
Tesla continues to push the boundaries of automotive manufacturing with technological innovations like its "deconstructed UNBOXED assembly technique." This process uses integrated die-casting and modular components, which allows the exoskeleton to bypass traditional steps like painting, drying, and repeatedly attaching and detaching doors. This makes the vehicle more durable, highly resistant to scratches and impacts, and well-suited for the high-frequency use required in Robotaxi operations. The design also exudes a futuristic, tech-forward aesthetic.
The Cybercab's cabin stands out due to the absence of a steering wheel and pedals, aligning with Tesla’s signature minimalist interior design. The cabin features two comfortable seats and a large central display to cater to passenger entertainment needs.
A video demonstration showed that a robot could automatically clean the Cybercab's interior. The Cybercab drives toward an inductive charger, opens its butterfly doors, and the cleaning robot starts clearing dirt and trash from inside, even wiping down the display screen. This suggests Tesla has devised a solution to help Cybercab operators maintain their vehicles with minimal human intervention, ensuring cleanliness without the need for manual assistance.
The RoboVan was a surprise reveal at the event—a self-driving multi-purpose vehicle that can not only transport up to 20 people but also carry cargo. Inspired by the Art Deco design of vintage trains, the RoboVan combines a retro look with futuristic features. It has a smooth, train-like front with no visible wheels, a silver metallic body with black accents, horizontal light strips along the sides, and a sliding door in the middle. Inside, the van provides both seating and standing room.
Wireless Charging
Tesla's upcoming wireless inductive charging technology was revealed through several new patent filings.
The primary benefit of wireless charging is its simplicity—vehicles only need to park in a designated wireless charging zone, where charging begins automatically without human intervention or complex mechanical steps. Wireless charging reduces the need for physical connectors, minimizing wear and tear on charging ports and reducing the likelihood of failures, which extends the lifespan of the equipment. It also eliminates many safety concerns associated with manual plug-in systems and can operate in various weather conditions, making it an ideal pairing with Tesla’s Full Self-Driving (FSD) technology.
However, wireless charging has its limitations. Setting up the required infrastructure involves installing embedded floor charging pads and control systems, which either means retrofitting existing Supercharger stations or creating new wireless charging areas. There are also efficiency concerns—wireless charging typically has higher energy loss compared to wired charging, which means it takes longer to charge the vehicle. For Robotaxi operators, this longer charging time could reduce profitability by limiting vehicle availability.
#03
Optimus Humanoid Robot
At the Cybercab launch event, Tesla also showcased its humanoid robot, Optimus, as a lineup of these robots slowly made their entrance. Optimus utilizes the same technology as Tesla’s self-driving cars—AI, software, and more—except it’s equipped with legs, arms, and joints.
“Optimus will walk among you,” Tesla CEO Elon Musk said. “You can walk right up to them, and they’ll serve you a drink.” Musk explained that Optimus can essentially “do anything,” citing examples like walking the dog, babysitting, and mowing the lawn. He added that, in the "long term," its price would range from $20,000 to $30,000. Musk declared, “I believe this will be the greatest product of all time.”
Compared to previous versions, Optimus is indeed more agile, with smoother movements and steadier steps. The new version features Tesla-designed actuators and sensors, making it 10 kilograms lighter and increasing its walking speed by 30%. Optimus also has newly upgraded hands capable of lifting heavier objects and performing more delicate tasks. In June, it started "working" in Tesla’s factory, using its visual neural network and FSD chips to mimic human actions, such as sorting batteries.
Musk mentioned that Optimus’ hardware will continue to improve, with the dexterity of its hands increasing to 22 degrees of freedom. He also noted that by the end of this year, Optimus would be able to perform practical tasks in factories, with sales expected to begin by the end of 2025.
#4
Conclusion
Tesla’s "Robotaxi Day" was not just a tech showcase but a deep exploration of the future of mobility and intelligent living. The introduction of the Cybercab, Robovan, and Optimus humanoid robots not only highlighted Tesla's latest advancements in autonomous driving and robotics but also signaled how these technologies are set to profoundly reshape our way of life in the near future.
