Tesla Bets Big on Self-Driving Tech and Robotaxi Network
Tesla outlines its ambitious plan to activate self-driving software in over a million vehicles and launch a driverless ride-hailing service to rival Uber.
Tesla hosts a major event to declare its full commitment to self-driving technology, with executives detailing the inner workings of their autonomous systems. The company states that all current Tesla vehicles possess the necessary hardware for driverless operation and require only a future software update to unlock the feature. Leaders predict that over one million cars carry this dormant capability by mid-2020.
As part of its bold vision, Tesla announces plans to launch a driverless ride-hailing network to compete directly with Uber and Lyft. The "robotaxi" fleet relies on a two-pronged strategy that includes company-owned vehicles in major cities and a program for private owners to loan their personal cars to the network. Passengers hail rides and complete their trips entirely through the Tesla app without a human driver present.
Despite the grand announcements, investors express noticeable skepticism about the company's timeline and execution. Tesla stock drops 3.9% as the presentation serves as a significant test for Musk, who faces ongoing questions about production hurdles and financial losses. The ambitious self-driving promises arrive amid broader concerns over the CEO's history of setting aggressive goals that ultimately miss their targets.