During Tesla’s recent earnings call, the company discussed its potential plan to launch a robotaxi network, showcasing a design for an app that would enable users to request vehicles similar to services like Uber and Lyft.
While the launch of Tesla’s robotaxi, now officially known as CyberCab, is expected in August, the development of a fully autonomous taxi service is still a few years away. So, why is Tesla keen on unveiling an app and introducing a Tesla taxi service?
In 2023, Uber generated a revenue of 37.28 billion, while Lyft’s revenue was significantly lower at 4.4 billion. In comparison, Tesla’s revenue last year stood at 96.77 billion. The potential profitability of a taxi service, even one operated by human drivers, is immense. While Tesla’s end goal may be an automated taxi service, the company seems eager to enter this space sooner rather than later.
Initially, Tesla’s robotaxi was envisioned as a service where owners could lend their vehicles. However, Tesla is now looking to include their own vehicles in the service as well.
Will Tesla Begin the Robotaxi Service With Tesla Drivers?
During the earnings call, Tesla drew parallels between itself and companies like Airbnb and Uber, hinting at a potential shift towards operating their own Uber-like service. While Tesla has the capability to start producing robotaxis soon, it might be wise to wait until full autonomy is achieved to avoid limitations with current FSD hardware.
Although full autonomy may still be a few years away, Tesla appears eager to move towards launching a Tesla-owned service. One possibility is that Tesla could release their future robotaxi app and service in a “beta” phase, allowing current Tesla owners to use their vehicles on the service.
This strategy could offer several advantages to Tesla, including the opportunity to test their service and establish an additional revenue stream. This approach could enable Tesla to kickstart their robotaxi network this year, gradually transitioning from owner-operated vehicles to Tesla-owned robotaxis.
Tesla Unveils Robotaxi App
At the earnings call, Tesla presented a design of their robotaxi app, signaling their readiness for the future and generating excitement among customers. The app showcased various screens demonstrating how users can request a robotaxi, track its progress, and control certain vehicle features. These screens reflect Tesla’s Autopilot features, such as summon, self-driving, and potential Autopark functionality.
Summon – The app simplifies the vehicle request process, aligning with Tesla’s innovative approach to car features. Users can request a vehicle by pressing and holding a summon button, receiving an estimated arrival time.
Set Preferences and Destination – The app allows users to view the vehicle’s location on a 3D map, potentially hinting at future FSD visualizations. Users can set their destination and adjust climate settings to their preference.
Trip Progress – While traveling in the vehicle, users can monitor trip information and access entertainment options.
Summary
Tesla’s recent earnings call shed light on their plans for the Robotaxi, unveiling more information than ever before.
While multiple components need to align for a service like this to materialize, Tesla seems to be addressing them individually. The robotaxi design is reminiscent of Tesla’s next-gen vehicle without a steering wheel, and Tesla plans to implement a new manufacturing process for the robotaxi. Additionally, while FSD is crucial for a driverless robotaxi network, it may not be a requirement for initiating a Tesla taxi service.
The ride-hailing aspect and its management were prominently featured during the earnings call, suggesting that this service may be closer to reality than anticipated. Tesla’s approach of integrating these components separately mirrors their strategy with Autopilot, gradually introducing features like auto-steer, summon, Autopark, and city driving over time.
Looking ahead, we may view this earnings call as a pivotal moment when Tesla transitioned towards becoming a services-oriented company.