Key Takeaways
1. Tesla has expanded its robotaxi service area beyond Waymo’s in Austin and raised ride fares by 65%, from $4.20 to $6.9.
2. The new fare is a fixed price for rides, aimed at testing the Robotaxi app and payment system rather than generating profit.
3. Tesla’s robotaxi service currently covers about 7% of Waymo’s area, with plans for further expansion to cities like San Francisco.
4. Future two-seater Cybercabs may lower the cost per mile to around 25 cents, making the service more competitive.
5. Cybercabs will use wireless charging and automatic cleaning, indicating advanced features for the Robotaxi platform in the future.
The Tesla Robotaxi ride-share service has now expanded its reach beyond Waymo’s area in Austin, where it is currently running a pilot program.
Price Increase
In just three weeks since launching, Tesla has significantly increased the size of the geofenced robotaxi service area and, in a rather cheeky move, has also raised the ride fare. The cost of a robotaxi ride has jumped by an eye-catching 65%, soaring from $4.20 to the new price of $6.9.
Elon Musk often includes the number 420 as a fun Easter egg, and with Tesla fans urging him to play with the number 69 ahead of the Robotaxi launch, this new fare might just be a playful joke—similar to the shape of the expanded service area on the map.
Testing the Waters
This $6.9 charge is a fixed price, no matter how many miles are traveled. The purpose of this pricing is not to recover operational costs or generate profit for Tesla, but mainly to test the Robotaxi app and its payment system.
Currently, the Tesla Robotaxi platform covers about 7% of Waymo’s overall service area in the US, with plans to expand to San Francisco and other cities by year-end. This growth will necessitate Tesla to establish more realistic pricing soon, allowing for a fair comparison of its Robotaxi service with other ride-share options in the market.
Future Prospects
Elon Musk has stated that when the two-seater Cybercabs begin robotaxi service next year and are produced in larger quantities, the cost per mile could potentially drop to as low as 25 cents, making them highly competitive.
However, the Cybercab won’t be able to utilize Superchargers or a Tesla wall connector; instead, they will be charged wirelessly on special pads and cleaned automatically by robots. This hints at exciting developments ahead for the Robotaxi platform, extending beyond its current trial in Austin.
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