Elon Musk officially announced Tesla will launch its paid robotaxi service in Austin during June 2023 using 10 to 20 Model Y autonomous vehicles. Musk announced during Tesla’s Q1 earnings call that the robotaxi service would grow rapidly, with plans to start multiple U.S. city operations by late 2025. Musk faced analyst doubt, but he persisted with his June launch date while assuring the service would create financial change by 2026.
Musk provided minimal technical information while assuring viewers to “see for themselves” in two months. Musk claimed the cars would function autonomously without any human intervention, which means Tesla would move directly from their current Level 2 autonomy to Level 4 automation. The proposed jump to Level 4 autonomy represents a significant move for Tesla since its Full Self-Driving software remains unapproved for this level of operation.
The forthcoming vehicles will utilize Model Ys instead of the Cybercab models, which were previewed during the previous year. Musk stated that the cars would feature audio sensors that would recognize emergency sirens and additional signals. The CFO of Tesla explained the company will maintain a remote assistance team that helps vehicles when they become stranded, just as Waymo and Cruise did before their dissolution.
The stock market reacted favorably to the news, resulting in Tesla shares rising by 5% in after-hours trading. However, concerns remain. The Q1 automotive revenue at Tesla declined 20% from the previous year, while net income dropped by nearly 40% to $409 million. Safety issues persist for Tesla because it deals with multiple lawsuits and investigations regarding its autonomous driving capabilities.
Still, Musk remains unfazed. He declared that after achieving success in several cities, the system could be implemented throughout all locations. The world will soon learn if Tesla can achieve its goal of delivering a secure, mass-produced robotaxi service by June.
