Tesla Inc. is gearing up to reveal its highly anticipated Robotaxi on August 8, according to CEO Elon Musk’s announcement on his platform X (previously known as Twitter). Bloomberg reported this development amidst Tesla’s struggle with declining sales, attributed to increasing competition from affordable Chinese electric vehicles (EVs).
Musk drops from his position as the third-richest person
Following the announcement, Tesla’s shares soared by up to 5.1 percent in postmarket trading in New York. However, it’s worth noting that the company’s stock has experienced a 34 percent drop this year up to Friday’s (April 5) close.
Just prior to Musk’s disclosure about the Robotaxi, he ceded his position as the world’s third-richest person to Meta Platforms CEO Mark Zuckerberg.
Attention pivots towards Robotaxi rather than cheaper car amid Musk’s announcement.
Tesla’s ambitious vision for a fully autonomous vehicle, first unveiled to investors in 2019, has been a key driver of its substantial valuation. Recent developments include the introduction of the latest iteration of its driver-assistance software, known as FSD (Full Self-Driving), to the market.
Although Tesla has suggested the possibility of introducing both a more affordable vehicle and a specialized Robotaxi as part of its next-generation vehicle lineup, prototypes for either have yet to be revealed, according to Bloomberg. Musk’s recent communication on X suggests a prioritization of the Robotaxi, even though both are slated for development on the same platform.
Earlier on Friday, Reuters reported that Tesla had scrapped plans for a lower-priced vehicle, opting instead to allocate resources towards the Robotaxi initiative. Musk swiftly dismissed this report, alleging that “Reuters is lying,” though he did not elaborate further.
Tesla grappled with an excess production of 46,561 vehicles in the first quarter, prompting price adjustments, as reported by Bloomberg. With consumers showing a preference for hybrid models over more expensive electric vehicles, manufacturers are reassessing their strategies for electrification.
