Tesla Unveils Anticipated Robotaxi Amidst Skepticism Over Its Technology

DETROIT (AP) — Anticipation is building for the much-anticipated introduction of Tesla’s robotaxi, dubbed the “Cybercab,” during an event at a Hollywood studio on Thursday night. However, some analysts and investors consider those expectations overly ambitious.

For nine years, Tesla has marketed its autonomous driving technology known as “Full Self-Driving,” a system that, as of now, still requires human intervention. The Cybercab is rumored to be unveiled without traditional driving controls like a steering wheel and pedals.

This unveiling comes at a time when CEO Elon Musk is working to shift investors’ focus toward artificial intelligence and robotics, even as Tesla faces challenges in selling its current lineup of aging electric vehicles.

Some analysts believe the event could mark a significant milestone for the Austin, Texas-based company as it edges closer to launching a long-awaited AI-driven robotaxi service. Yet, experts who specialize in self-driving technology express skepticism, noting that Musk has yet to prove that Tesla’s system can operate safely without a human driver ready to intervene in emergencies.

“I find it perplexing that the narrative continues to be about what Tesla will reveal rather than questioning why they think we would fall for this,” commented Bryant Walker Smith, a law professor at the University of South Carolina who focuses on autonomous vehicles. He doubts Tesla’s capability to showcase a fully operational system devoid of human oversight, even in familiar areas where the technology has had pre-established usage.

Walker Smith emphasizes, “We haven’t seen clear evidence that Tesla is on the path to achieving this. If they were, we’d expect demonstrations in real-world environments like cities or highways, not just on closed properties.” He added that without advancements in autonomous technology, Tesla would merely be showcasing a vehicle that lacks traditional controls, a feat already accomplished by numerous competitors.

Many industry observers share similar sentiments regarding the upcoming event. According to TD Cowen analyst Jeff Osborne, while Musk is likely to unveil the Cybercab and potentially a new lower-cost electric vehicle called the Model 2, he does not anticipate any significant breakthroughs in self-driving technology. “We expect this event to lack detailed information and primarily cater to die-hard Tesla supporters,” Osborne indicated in a note. Musk’s assertions about the state of Full Self-Driving are critical, especially in light of past delays and continuous scrutiny surrounding Tesla’s less sophisticated driver-assist feature, Autopilot.

Tesla’s current model range appears stagnant, with no major refresh expected until late next year, Osborne noted. He also pointed out that Musk’s growing political involvement, including endorsements for Republican figures and participation in rallies, may be affecting Tesla’s appeal among Democratic consumers in the U.S.

For over five years, Musk has been asserting that a fleet of robotaxis is just around the corner, promising Tesla owners opportunities to earn income by allowing their vehicles to carry passengers when not in use. However, he has also acknowledged that previous predictions about the rollout of autonomous driving may have been overly optimistic; he had once claimed that such a fleet would be operational by the end of 2020.

In contrast, Wedbush analyst Dan Ives remains optimistic about Tesla’s future. In a note to investors, he referred to the event—titled “We, Robot”—as a new chapter for the company, projecting updates about the robotaxi, advancements in Full Self-Driving, and possible innovations in artificial intelligence. Ives anticipates a phased rollout of robotaxis within the next year, along with a Tesla ride-sharing app and technology demonstrations designed to transform urban transport.

He mentioned that his organization will be present at the exclusive event at Warner Bros. studio and is also expecting news about Tesla’s Optimus humanoid robot, which the company aims to begin selling in 2026. Ives noted, “This represents a crucial moment for Tesla, as the company prepares to unveil its years of research and development on robotaxis, while Musk and his team outline their vision for the future.”

This announcement occurs against a backdrop of investigations by U.S. safety regulators into Tesla’s Full Self-Driving technology and Autopilot system, which have been scrutinized for a lack of measures ensuring that drivers remain attentive. Additionally, the U.S. National Highway Traffic Safety Administration compelled Tesla to recall its Full Self-Driving feature in February due to its allowance for speeding and other traffic violations, particularly near intersections. Tesla aimed to rectify these issues with an online software update.

In an incident last April in Snohomish County, Washington, a Tesla utilizing Full Self-Driving was involved in a collision that resulted in a motorcyclist’s death. The driver reported looking at their phone while engaging the technology at the time of the accident. The National Highway Traffic Safety Administration is currently evaluating data related to this fatal incident from both Tesla and law enforcement officials.

The Justice Department is also in pursuit of information from Tesla concerning issues related to Full Self-Driving and Autopilot, alongside other inquiries.