Tesla unveils its long-awaited robotaxi amid doubts about the technology it runs on

DETROIT (AP) — Expectations are high for the long-awaited unveiling of Tesla’s robotaxi at a Hollywood studio Thursday night. Too high for some analysts and investors.

The company, which began selling software it calls “Full Self-Driving” nine years ago and which still cannot drive itself, is expected to introduce the so-called “Cybercab” vehicle, which may not have steering wheel or pedals.

The unveiling comes as CEO Elon Musk tries to persuade investors that his company is focusing more on artificial intelligence and robotics as it struggles to sell its core products, an aging line of electric vehicles.

Some analysts predict it will be a historic day for the Austin, Texas, company as it takes a big step toward a long-awaited AI-powered robotaxi service.

But others who track autonomous vehicles say Musk has yet to demonstrate that Tesla’s system can travel safely without a human driver ready to intervene to avoid accidents.

“I don’t know why the headlines keep being ‘What is Tesla going to announce?’ rather than “Why does Tesla think we’re so stupid?” said Bryant Walker Smith, a law professor at the University of South Carolina who studies autonomous vehicles.

He doesn’t see Tesla having the ability to introduce software and hardware that can operate without human supervision, even in a limited, well-known area of ​​the driving system.

“We just haven’t seen anything that indicates that this is what Tesla is working toward,” Walker Smith said. “If they were, they would present it not on a closed lot, but in a real city or on a real highway.”

Without a clear breakthrough in autonomous technology, Tesla will simply introduce a vehicle without pedals or a steering wheel, something many other companies have already done, he said.

“The challenge is to develop a combination of hardware and software and human and digital infrastructure that allows a vehicle to be operated safely, even without a steering wheel, on public roads, regardless of conditions,” said Walker Smith . “Tesla offers us this demo every year, and it doesn’t reassure us.”

Many industry analysts also don’t expect much from this event. While TD Cowen’s Jeff Osborne expects Musk to reveal the Cybercab and perhaps the Model 2, a less expensive electric vehicle, he said he doesn’t expect much change in technology autonomous driving.

“We expect the event to be light on details and appeal to long-time true believers in Tesla,” Osborne wrote in a note. Musk’s claims about fully autonomous driving readiness, however, will be crucial “given past delays and ongoing scrutiny” of Tesla’s less sophisticated Autopilot driver assistance system and software .

Tesla’s model lineup is struggling and likely won’t be refreshed until late next year at the earliest, Osborne wrote. Additionally, he wrote that, according to TD Cowen, the “politicization of Elon” is tarnishing the Tesla brand among Democratic buyers in the United States.

Musk has supported Republican presidential candidate Donald Trump and has championed many conservative causes. Last weekend, he joined Trump at a rally in Pennsylvania.

Musk has claimed for more than five years that a fleet of robo-taxis is nearby, allowing Tesla owners to make money by ferrying passengers in their cars when they’re not in use by the owners.

But he acknowledged that past predictions about the use of autonomous driving have proven too optimistic. In 2019, he promised a fleet of autonomous vehicles by the end of 2020.

However, Wedbush analyst Dan Ives, bullish on Tesla stock, wrote in a note to investors that the robotaxi event, dubbed “We, Robot” by the company, would be a new chapter of growth for Tesla.

Ives expects many updates and details from Tesla on the robotaxi, as well as breakthroughs in fully autonomous driving and artificial intelligence. It’s also seeking a phased strategy to roll out robo-taxis over the next year, as well as a Tesla ride-sharing app and technology demonstrations “designed to revolutionize urban transportation.”

Ives, whose organization will attend the invitation-only event at the Warner Bros. studio, wrote that he also expects updates on Tesla’s Optimus humanoid robot, which the company plans to begin selling in 2026.

“We believe this is a pivotal time for Tesla as the company prepares to release its years of Robotaxi R&D hidden behind the curtains, while Musk & Co. lays out the company’s vision for the “future,” Ives wrote.

The announcement comes as US safety regulators investigate fully autonomous driving and Autopilot, based on evidence showing their system is weak in ensuring human drivers pay attention.

Additionally, the U.S. National Highway Traffic Safety Administration forced Tesla to recall the Full Self-Driving system in February because it allowed speeding and violated other traffic laws, particularly near intersections. . Tesla was to fix the issues with an online software update.

Last April, in Snohomish County, Washington, near Seattle, a Tesla using the Full Self-Driving system struck and killed a motorcyclist, authorities said.

The Tesla driver told authorities he was using the system while looking at his phone when the car hit the motorcyclist. The motorcyclist was pronounced dead at the scene, authorities said.

NHTSA says it is evaluating information about the fatal crash provided by Tesla and law enforcement.

The Justice Department also requested information from Tesla on fully autonomous driving and Autopilot, as well as other items.

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