Tesla CEO Elon Musk unveiled the company’s plans for driverless technology and AI at a Hollywood event Oct.10, showcasing a prototype of the Cybercab, a fully autonomous vehicle expected to hit production by 2026. During the event, Musk promised the popular Model 3 and Model Y vehicles would operate without driver supervision in California and Texas by next year.
The unveiling, which took place on the Warner Bros. studio lot, featured a silver, two-door Cybercab and a robovan capable of transporting up to 20 people. Musk emphasized the societal benefits of autonomous transportation, claiming it could “reshape cities by turning parking lots into parks.” He further stated the Cybercab would be priced under $30,000, significantly lower than many of Tesla's current models.
Tesla also demonstrated humanoid robots, programmed to mix drinks, which Musk predicted would be a future best-seller. "I think this will be the biggest product ever, of any kind," Musk said, hinting at a future market price between $20,000 and $30,000.
While the high-energy, electronic dance music-themed event sparked intrigue, many investors and analysts expressed concerns about the lack of concrete details surrounding Tesla’s transformation into an autonomous driving and AI company. Despite Tesla’s stock rising 50% since April, largely due to the robotaxi announcement, shares fell nearly 10% on Oct. 11, as investors questioned the company's roadmap for executing these bold promises. Tesla’s shares remain down 8% over the past year, contrasting with a 33% rise in the broader S&P 500 index.
Tesla’s ambitious push into autonomous and AI-driven products is seen by many as a risky but necessary move to fend off increasing competition from lower-priced electric vehicles entering the market. However, how Tesla will implement these plans while maintaining profitability remains a key question for both investors and industry experts.
