Tesla, Musk announces: we will launch a robotaxi

Here comes the Tesla robotaxi. Elon Musk revealed on X that the car manufacturer will introduce a self-driving robotaxi on 8 August. After the announcement, Tesla's shares jumped more than 5% in aftermarket trading after a difficult week.

The entrepreneur has long boasted about the work Tesla is doing on its systems to enable electric cars to drive themselves. Tesla models with FSD (Full Self-Driving) "will be superhuman to such an extent that it will seem strange in the future for humans to drive cars, even if they are exhausted and drunk!" he said in a post on X last March. Musk also said that owners of Tesla vehicles with FSD will be able to have their cars act as robotaxis, rather than being parked.

Despite its potential, the introduction of self-driving vehicles in the US has so far been uncertain and difficult, with both legislators and the public expressing concerns about safety. San Francisco has been a test bed for the technology. Google Waymo's robotaxis in the city have been targeted by vandals opposed to autonomous vehicles, while GM-owned Cruise suspended its robotaxi service indefinitely in late October after several incidents triggered a crackdown by California regulators.

Tesla's 'autopilot' feature has also come under scrutiny and accused of 'inflating' its capabilities to boost sales. The revelation of Tesla's robotaxi comes shortly after Reuters reported that the company had abandoned plans to produce a low-cost electric car model with a price tag of around $25,000 to encourage mass market adoption. Musk, however, denied the news.

However, Tesla's sales in the first quarter were well below expectations against a background of disappointing demand for electric vehicles, while incumbent players, including Toyota, saw their volumes increase.