Elon Musk to unveil Tesla robotaxi as company shifts focus away from low-cost EV manufacturing

Elon Musk, the CEO of Tesla, has revealed intentions to unveil a Tesla robotaxi on August 8, in response to recent speculation about the company’s shift away from a budget-friendly electric vehicle. Musk’s announcement comes after he refuted a Reuters report suggesting that Tesla was abandoning its $25,000 EV project to focus on the development of a robotaxi.

A strategic change in the midst of sales difficulties

Tesla’s decision stems from slow electric vehicle sales and declining profits, prompting Musk to look for alternative ways to bolster the company’s performance. Reports indicated that Tesla planned to use the same platform for both low-cost electric cars and robotax, leading to speculation about the company’s strategic direction, Techcrunch reported.

Commitment to autonomous driving technology

While Musk denied the Reuters report on social media, he did not provide any evidence to support his claim. Shortly after, he confirmed plans to unveil the “Tesla Robotax” next month. The move marks Tesla’s long-term efforts to advance autonomous driving technology despite previous setbacks.

Over the years, Musk has chosen between prioritizing traditional electric cars and fully autonomous vehicles. Despite the challenges in delivering on his promise, Musk remains committed to developing self-driving features in Tesla vehicles. The company’s current driver assistance system, Autopilot, offers some automated driving features, and users can purchase “full self-driving” (FSD) capabilities for an additional fee.

While FSD includes features like Summon and Navigate on Autopilot, Tesla vehicles are not fully autonomous and require driver supervision at all times. Nevertheless, Musk’s announcement of the Tesla robotax reflects the company’s continued innovation in the automotive industry.

Musk’s ambitious timelines for introducing autonomous vehicles, including cross-country self-driving and the launch of a robot taxi, have been repeatedly delayed. However, with the impending unveiling of the Tesla Robotax, Musk aims to show significant progress toward realizing his vision of an autonomous transportation future.