Tesla Delays Robotaxi Unveiling to October, Giving Teams More Time to Refine Prototypes
Delay Causes Share Price to Plummet
Tesla Inc. has decided to postpone its planned robotaxi unveiling from August to October, allowing teams working on the project more time to build additional prototypes. The roughly two-month delay has been communicated internally, according to sources familiar with the decision.
Elon Musk Set Initial August 8 Date
Tesla CEO Elon Musk initially announced the August 8 unveiling date months ago, and optimism surrounding the event contributed to an 11-day streak of gains that added more than $257 billion to Tesla’s market capitalization. However, the stock closed 8.4% lower on Thursday, its largest drop since January.
Rival Companies Experience Surge in Stock Value
Shares of would-be taxi rivals Uber Technologies Inc. and Lyft Inc. both surged on the news, with Uber’s stock rising 6.1% on Thursday and Lyft shares jumping 4.6%.
History of Robotaxi Project
The idea of creating an autonomous taxi service has been kicking around Tesla for years, dating at least as far back as when Musk authored a second "master plan" for the company in 2016. The CEO has prioritized the project in recent months over work on an electric vehicle cheaper than Tesla’s most affordable car, the Model 3 sedan.
Musk’s Enthusiasm for Autonomous Vehicle Technology
Musk has talked up Tesla’s work on autonomous-vehicle technology for over a decade and convinced customers to pay thousands of dollars for a suite of features the company markets as Full Self-Driving (FSD). However, the name is a misnomer, as FSD requires constant supervision and doesn’t render Teslas autonomous. Musk and top engineers have been increasingly bullish about FSD in recent months as the company’s vehicle sales have slowed.
Company’s Sales Slowdown
Tesla delivered 6.6% fewer cars in the first half of the year, despite adding a new model, the Cybertruck, to its lineup. The automaker also produced 14% fewer vehicles in the second quarter than it did a year earlier to help curtail swelling inventory.
Conclusion
The delay in the robotaxi unveiling may cause short-term concerns for Tesla investors, but it’s likely a necessary step to ensure the company delivers a high-quality product. As the autonomous taxi industry continues to evolve, Tesla’s commitment to innovation and improvement is crucial to its success.
FAQs
Q: Why is Tesla delaying the robotaxi unveiling?
A: Tesla is delaying the robotaxi unveiling to give teams more time to build additional prototypes and refine the design.
Q: How much will the delay impact Tesla’s market capitalization?
A: The delay may cause a short-term decline in Tesla’s market capitalization, but the long-term impact is uncertain.
Q: Will this delay affect the autonomous taxi industry?
A: The delay may have a ripple effect on the autonomous taxi industry, but it’s unlikely to have a significant impact in the long term.
Q: What does the delay mean for Elon Musk’s plans for Tesla?
A: The delay is a sign of Musk’s commitment to quality and innovation, even if it means sacrificing short-term gains.
Author: fortune.com
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