Tesla Aims to Release Robotaxis in "Five or Six Months," CEO Musk Announces

Elon Musk, CEO of Tesla (TSLA), has pledged to introduce robotaxis "in the wild" by this summer, specifically in Austin, Texas. Musk made this announcement during Tesla's earnings call on Wednesday, claiming that fully autonomous vehicles will be operating without human drivers on public roads in the near future.

Musk's Track Record on Autonomous Driving

Musk has been making bold claims about Tesla's self-driving technology for nearly a decade:

* 2016: Musk stated that every Tesla produced had the necessary hardware for Full Self Driving (FSD).
* 2019: Musk promised a fleet of 1 million robotaxis by 2020.
* 2020: Musk claimed FSD would be "feature complete" by year-end.
* 2021: Musk expressed confidence in achieving FSD the following year.

Skepticism from Investors

Tesla's fourth-quarter earnings announcement sparked concerns among investors about the feasibility of Musk's latest promises. Despite increased revenue, automotive revenue declined, and operating income dropped significantly. Some investors speculate that Tesla may struggle to meet its goals amidst these financial challenges.

Tesla's FSD Plans

Tesla unveiled its Cybercabs at an event in October. The vehicles, which lack steering wheels, pedals, or humans in the front seat, are being tested in Fremont, California, and are intended to launch as a paid ride-sharing service.

Regulatory Challenges

The deployment of autonomous vehicles faces significant regulatory hurdles. Various states have established their own statutes for such transportation, and legal experts anticipate that Tesla will need to navigate a complex regulatory maze to realize Musk's vision.

Competition from Other Companies

Tesla faces competition from companies like Waymo (Google), Zoox (Amazon), Volkswagen, and AVRide, which are also testing autonomous vehicles in Austin. Additionally, Hyundai is in the mapping phase.

Analyst Perspectives

Analysts remain cautious about Musk's optimism. William Blair analyst Jed Dorsheimer recommends adding 6 to 12 months to Musk's timelines for FSD. Morgan Stanley analyst Adam Jonas believes that Tesla's revenue model is shifting away from purely automotive towards AI and robotics.