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Briefing

Soft Launch

Tesla rolls out Robotaxis in Austin, Texas

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The news: Tesla is set to launch its robotaxi service in Austin, Texas on Sunday, marking the company’s long-awaited entry into the autonomous ride-hailing market.

The numbers: Up to 20 Tesla Model Ys are expected to be involved in the launch, with the small fleet restricted to limited areas of the city. Tesla hand-picked a number of customers who will be the first passengers and are expected to offer feedback on the experience.

Musk has previously forecast that autonomous vehicles could add USD5 trillion ($7.7 trillion) to USD10 trillion to Tesla’s market capitalisation, which currently sits at around USD1 trillion.

The context: There will not be a human driver behind the wheel during the launch, but Tesla said that there will be a safety monitor sitting in the front passenger seat. The robotaxis will be operated through an advanced version of Tesla’s driver-assistance software, coined Full Self-Driving, which relies on eight cameras that act as sensors for the system.

The WSJ says that Tesla plans to introduce two specially designed robotaxis to its service, a small, gold-coloured sedan called the Cybercab, and a model called the Robovan. Neither of the new vehicles have steering wheels or pedals and could be rolled out sometime next year.

The launch has been highly anticipated by Tesla fans and investors, who are hoping that the new offering could buoy the brand which has been dogged by lagging sales and widespread consumer backlash against CEO Elon Musk.

News of the rollout began emerging in recent days after several social media users who have been known for promoting the EV carmaker, shared details about the launch and that they’d been selected to participate. The invitation says that the service would be limited or unavailable in bad weather, with Musk earlier noting that the company was being “super paranoid about safety.”

The sources: WSJ, Bloomberg, Reuters, CNBC


By Paige McNamee