EV giant Tesla Inc TSLA believes full autonomy will drive volume through the ceiling by enabling its much-awaited robotaxis.
What Happened: Tesla’s dedicated Robotaxi products will be a revolutionary design made in a revolutionary way, CEO Elon Musk said in the company’s second-quarter earnings call on Wednesday. “It'll be by far the highest units per hour of any vehicle production ever,” Musk said while adding that he is very excited about the same.
Musk has been touting the idea of fully autonomous Tesla vehicles functioning as a Robotaxi since as far back as 2019. However, Tesla is yet to achieve complete self-driving capability. Talking about FSD, Musk said, “I think we'll be better than humans by the end of this year.”
“That’s not to say we are approved by regulators,” he warned while also adding that he may be wrong with his predictions this time as he had been several times in the past.
Why It Matters: In April 2022, Musk predicted Tesla to achieve volume production of Robotaxis in 2024.
"We aspire to reach volume production of that [Robotaxi] in 2024. It will be a massive driver of Tesla's growth," Musk had told investors.
Musk is not the only one optimistic about Robotaxis and its impact on Tesla. In May, ARK Invest‘s Cathie Wood said that the autonomous taxi platform business will grow globally to $8-$10 trillion in revenue in 2030 and thereabouts. Earlier this month, an Ark analyst suggested Tesla’s platform fees could command a staggering 80-90% of the gross revenues from autonomous ride-hailing.
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