Tesla plans to unveil its long-promised robotaxi later this year as the electric car maker struggles with weak sales and competition from cheaper Chinese EVs. CEO Elon Musk posted on his social media site X on Friday that Tesla's robotaxi will be unveiled on August 8th.
Shares rose as much as 5.1% in after-market trading in New York. Tesla stock has fallen 34% this year through Friday's close. Shortly before Musk posted the robotaxi news, he was dethroned by Mark Zuckerberg, CEO of Meta Platforms, as the world's third-richest person. Ta.
Fully self-driving cars, touted to investors in 2019, have long been key to Tesla's strong valuation. In recent weeks, Tesla has rolled out to consumers the latest version of its driver-assistance software, which it sells as FSD (Full Self-Driving).
The company said its next-generation vehicle platform will include both cheaper cars and dedicated robotaxis. The company has teased both, but has yet to unveil prototypes of either. Musk's tweet on Friday indicates that robotaxis are being prioritized over cheaper cars, although both will be designed on the same platform.
Reuters reported early Friday that automakers are scrapping plans for lower-cost vehicles and shifting more resources toward bringing robotaxis to market. In response, Musk said, “Reuters is lying,'' without going into specifics.
Tesla also produced 46,561 more vehicles than it delivered in the first quarter, forcing it to cut prices. American consumers have shunned more expensive EVs in favor of hybrid models, causing many manufacturers to reconsider their efforts to electrify their vehicles.
Mr. Musk's flashy product announcements have always been a key part of Tesla's ability to drum up customer and investor enthusiasm without traditional advertising costs. They don't always work. The company unveiled the Cybertruck to great fanfare in November 2019, but production has been delayed for years and the launch of that vehicle has also been delayed.