Who is the designated driver? In the not-so-distant future, this question will likely become irrelevant: Tesla has announced the start of production of its new autonomous taxi vehicle, Cybercab, a move that brings Elon Musk’s vision of driverless transportation back to center stage. The announcement comes as the company’s sales weaken and may signal a new strategic direction that relies less on car sales and more on transportation services.
The Cybercab, first unveiled about two years ago, presents a relatively radical concept even in the world of electric vehicles. It is a two-door vehicle with only two seats and without components that have until now been considered essential - a steering wheel and pedals. This means a full transition to autonomous driving, with no option for human driver intervention under normal conditions.
The new model is intended to be part of Tesla’s Robotaxi network, a shared transportation service in which a fleet of autonomous vehicles will move around cities and pick up passengers on demand, similar to existing ride-hailing apps, but without drivers. According to the company, the network will include a combination of vehicles with and without human supervisors, at least in the early stages of operation.
The service has already begun limited operations in Austin and later expanded to cities such as Dallas and Houston. According to plans presented to investors, further expansion to additional cities is expected in the coming months, including Phoenix, Miami, Orlando, Tampa, and Las Vegas. However, the pace of expansion remains gradual, and the company has not provided precise data on the number of active vehicles or the share of rides conducted without a supervising driver.
One of the key aspects generating interest around the Cybercab is its price. Musk has previously indicated that the vehicle will be cheaper than other Tesla models, but no official figure has been released so far. The assumption is that the business model will rely less on private sales and more on operating a fleet of vehicles owned by the company or in partnership with vehicle owners.
The main challenge remains regulatory. A vehicle without a steering wheel or pedals requires exceptional approvals from transportation authorities, particularly in the United States, where regulations are still based on the presence of a human driver. This means that even if production has begun, the path to widespread deployment may be long and complex.
Meanwhile, Tesla is dealing with a decline in global sales and increasing competition from other electric vehicle manufacturers. The company’s stock has dropped by about 17% since the beginning of the year, a figure that highlights the pressure under which it is operating. The current move may be seen as an attempt to accelerate the transition to the world of autonomous transportation, in which Tesla seeks to position itself as a leader.
Despite the statements, Musk himself is tempering expectations regarding revenue. According to him, significant income from Robotaxi services is not expected before 2027, indicating that this is a long-term initiative that is still in its early stages of development.