Tesla’s highly anticipated “We, Robot” event showcased two groundbreaking autonomous vehicles: the Cybercab and the Robovan, underscoring Elon Musk’s ambitious vision for the future of transportation.
The Cybercab, a futuristic, almond-shaped car without a steering wheel or pedals, is designed as a robotaxi and could be priced under $30,000. Musk confidently stated that both the Cybercab and Robovan—which can transport up to 20 people or large cargo loads—would have operating costs cheaper than a bus, positioning them as a more efficient alternative to traditional public transportation.
At the heart of Musk’s vision is the advancement of self-driving technology, which he argues will be not only more cost-efficient but also safer and more productive for society. By converting their Teslas into autonomous taxis when not in use, owners can generate passive income, as no driver is required. This contrasts with services like Uber, where drivers still exchange time for money. Musk highlighted the untapped potential, noting that the average car is only used for 10 hours a week, meaning autonomous vehicles could be utilized five to 10 times more frequently, transforming idle cars into income-generating assets.
Tesla plans to begin producing the Cybercab before 2027, though Musk acknowledged potential delays. As for the Robovan, a specific production timeline remains elusive. Both vehicles will form the backbone of Tesla’s new business model, positioning the company to compete with Alphabet’s Waymo, General Motors’ Cruise, and ride-sharing titans like Uber and Lyft.
However, I believe it would be more beneficial for Tesla to partner with ride-hailing companies by either selling autonomous vehicles to them or sharing revenue, rather than competing directly. These platforms have already achieved network effects that are difficult and costly to replicate.
However, despite the fanfare, the event focused more on long-term vision than immediate deliverables. Musk shared little about Tesla’s driverless taxi business model, and there was no mention of the ride-hailing app Tesla previewed to investors earlier this year.
Musk’s lofty ambitions are not new. He predicted fully autonomous Teslas by 2017 and robotaxis by 2020—both timelines that have since passed without realization. This has left some skeptical, not necessarily of the technology but of the regulatory hurdles that must be cleared for autonomous vehicles to gain widespread acceptance. It’s not something Tesla can achieve alone—regulators and the public must buy into the concept for it to succeed on a large scale.
As a result, shares of Uber and Lyft surged by 11% and 10%, respectively, after the event, while Tesla’s stock fell 9%, reflecting investor skepticism following the underwhelming reveal.
Despite these challenges, Musk continues to push boundaries. He reiterated that autonomous vehicles are the future of transportation, comparing human-driven cars to outdated elevators that once required operators. His vision extends beyond transportation, as he highlighted Tesla’s Optimus robots—personal androids capable of performing household tasks like grocery shopping and lawn care. Musk claimed that these robots would be Tesla’s biggest product yet, driving down the cost of goods and ushering in an “age of abundance.”
For investors, betting on Tesla is not just about electric vehicles or autonomous driving; it’s about Elon Musk. While many of his timelines have been overly optimistic, Tesla’s dominance in the EV market and SpaceX’s success in reducing space travel costs are proof of Musk’s ability to deliver, albeit with delays.
Yes, skepticism is warranted, and yes, Musk has missed targets in the past. But the visionary mindset he brings to Tesla is what makes the company unique. Investors are buying into Musk’s relentless pursuit of innovation and his bold predictions for the future. As the saying goes, “Shoot for the moon, and even if you miss, you’ll land among the stars.” Whether it’s a self-driving car, a robotaxi network, or a personal android assistant, some of Musk’s audacious ideas will eventually come to fruition. The only question is when.