Tesla has finally launched its highly anticipated robotaxi, the Cybercab, after a series of setbacks. CEO Elon Musk claims this development will not only redefine Tesla’s future but also disrupt the wider vehicle market. At an event hosted at Warner Bros Studios in Los Angeles, Musk showcased 20 Cybercabs, along with a surprise reveal—a 20-passenger vehicle dubbed the “Robovan.” Yet, despite the spectacle, questions still linger about the underlying technology and how the company plans to counter falling EV sales.

Only limited details of the Cybercab were revealed
Musk first promised a robotaxi in 2019, but the path to the launch has been riddled with delays and challenges. Despite finally making its debut, few concrete details about the Cybercab were provided.
What we do know is that production for mass-market availability is expected to begin in 2026, with a price tag of USD30,000. Notably, the Cybercab moves away from conventional charging methods, relying instead on inductive charging, eliminating the need for a plug.
Will Roberts, Automotive Research Lead at Rho Motion, raised concerns, stating: “Inductive charging may limit the mass appeal of the Cybercab. Already, the installation of charging systems at home is costly and a laborious effort for many customers. Installing a wireless charger will most likely require higher capital costs, more space, and more effort.”
Full self-driving technology
Musk also addressed the state of Tesla’s Full Self-Driving (FSD) “unsupervised” technology, claiming it will soon be available for the Model 3 and Model Y in Texas and California by next year. If this development is possible, it will create a shift in the North American EV market.
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What was missing?
When the Cybercab was first announced, it was supposed to be built on a new vehicle platform, which would also serve as the foundation for an affordable EV, expected to cost around USD25,000. However, back in April, Reuters reported that this project had been scrapped, prompting Musk to tweet, “Reuters is lying (again).” Yet, at the Cybercab launch, no mention was made of this affordable model, fuelling speculation that it has indeed been shelved.
Challenges lie ahead for Tesla
Tesla is not alone in pursuing autonomous vehicle technology in the US. Waymo, a subsidiary of Alphabet, already operates autonomous ride-hailing services in several cities. Building a presence in this market has required years of regulatory compliance and safety checks. Musk’s timeline of launching fully autonomous vehicles by 2025, followed by Cybercab production in 2026, seems ambitious, given the regulatory hurdles that remain.
Tesla’s approach to autonomous technology has also been under scrutiny, particularly concerning safety. Most companies, including Waymo, use a combination of LIDAR, radar, and mapping technologies to ensure a multi-layered safety net. In contrast, Tesla relies primarily on cameras and AI-driven end-to-end machine learning, mimicking human vision to interpret surroundings and make driving decisions. This more reactive system has raised eyebrows in the industry, however the rewards of such a technological advancement are potentially a lot higher.
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The Cybercab in the context of Tesla’s market performance
Even before introducing the Cybercab, Tesla was grappling with a more pressing issue, falling EV sales. The company has had a challenging year, Rho Motion analysis shows its sales are down 9% in the US and 5% globally year to date. Investor confidence has shown signs of waning, as Tesla has yet to present a clear strategy to counter these declines. Some argue that the ageing product line could be part of the problem; the Model 3, released in 2017, and the Model Y, launched in 2019, have begun to feel stale to some customers.
While the Cybercab in the long term could be a success, it does little in the short term to calm investor nerves, particularly those worried about the broader EV market’s current struggles. This considered, Musk has stated for some time that Tesla is much more than an EV company, and the release of the Cybercab technology does show the strong potential of its business operations.
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Image credit: Tesla
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