Cybercab, a driverless Tesla vehicle with two doors that Elon Musk once envisioned as the future of urban transportation, may have turned into Elon Musk’s biggest gamble – and potentially his biggest mistake.
Reports from The Information and other news sources have revealed that Tesla’s internal team had doubts about the project from the start. When crunching the numbers, they realized that the market for driverless taxis was too small and not financially viable.
The main issue lies in the fact that the market is too niche, especially for a vehicle of this style. Even in the United States, where Tesla originates, the demand for driverless taxis may not exceed one million annually. Many still prefer to own a car with a steering wheel, storage space, or family-friendly features.
Moreover, international markets like Germany and China may not readily approve of such vehicles. India and Latin America may not have the purchasing power for expensive driverless cars either.
Ultimately, Tesla’s internal team concluded that Cybercab might not be worth pursuing and may never achieve Musk’s vision.
Furthermore, Musk’s decision to cancel the budget-friendly Model 2 or Tesla’s low-cost model, despite its potential global sales, has shocked fans and investors alike. Musk’s focus has now shifted towards the “ChatGPT era” at Tesla, emphasizing the rapid evolution of AI technology.
However, skepticism remains among fans and investors, as evidenced by the disappointing presentation at the We, Robot event. The unveiling of the Cybercab, Robovan, and barely functional Optimus robot led to an immediate 8% drop in Tesla’s stock the following day.
Additionally, Musk’s refusal to partner with Uber for Cybercab services has put Tesla in direct competition with established players like Uber, Lyft, and Waymo, who already have functioning driverless taxi systems in several cities.
Former executives like Rohan Patel have warned Musk about the market readiness, incomplete technology, and unrealistic demand for driverless taxis. Despite the caution, Musk remains determined to move forward.
Musk believes that the future of Tesla lies not in cars but in AI and robotics, particularly Optimus, which he predicts could sell over 100 million units annually, generating billions in profits for Tesla. This unconventional approach reflects Musk’s classic visionary outlook.
Analysts see Musk missing out on crucial opportunities while Chinese EV manufacturers rapidly introduce budget-friendly electric vehicles to the global market. With key Tesla executives departing and dwindling profits, the future of Tesla’s core electric vehicle business seems uncertain.
This isn’t the first time doubts have arisen about Elon Musk’s ventures, ranging from rockets to AI, but Cybercab presents a unique challenge. If successful, it could be another Musk legend, but if it fails, Tesla may have to reassess missed opportunities and alternative futures rooted in hope rather than reality.
TLDR: Elon Musk’s driverless taxi project, Cybercab, faces skepticism due to a limited market, competition with established players, and potential missed opportunities for Tesla’s future growth. Musk’s vision for a driverless future may need to adapt to market realities.
Leave a Comment