During an event to announce its Robotaxi initiative, Tesla expressed plans to introduce its most affordable car by 2026, assuming it can navigate all regulatory challenges by that time.
Limited Launch Plans
This upcoming release will be a more modest affair compared to the detailed vision of the Cybercab ride-share service shared by Elon Musk and other members of the Tesla team. In various quarterly press briefings, Musk has outlined an extensive ride-hailing network that will feature both Tesla-owned vehicles equipped with pedals and steering wheels, along with the Robotaxi service. Additionally, current Tesla owners will have the opportunity to rent out their Model Y or Model 3 when they aren't using them, allowing them to earn some extra cash.
Robotaxi Fleet Details
The Robotaxi segment of the Cybercab fleet will likely begin with two-seaters that are owned and operated by Tesla. It will include a customer service call center with human operators for added safety, mirroring the approach taken by Waymo. This information was communicated to Deutsche Bank analysts by Tesla's investor relations head, Travis Axelrod, who noted that the service will initially be available only in California and Texas, where there are either no driverless car restrictions or established regulations.
Tesla thinks it’s sensible to have some form of teleoperation, at least in the beginning, for safety reasons. The management plans to kick off the service with a fleet entirely owned by the company and will utilize an in-house developed ride-hailing app.
Future of the Cybercab Service
It remains unclear if the Cybercab service will feature Model Y, Model 3, and Cybertruck vehicles at launch, or if it will solely consist of Robotaxis. Regardless, it appears that current Tesla owners will only be able to rent their vehicles on the ride-share platform after the company has conducted thorough testing on public roads.
Moreover, analysts from the bank have confirmed that Tesla might actually pursue the launch of a more affordable car, which Deutsche Bank has named Model Q, in the first half of 2025, as mentioned during Tesla’s last earnings call. Previously known as Model 2, this new vehicle is anticipated to resemble a smaller Model Y and will be priced around $30,000 with potential subsidies, slightly above the Robotaxi, which is expected to be Tesla's least expensive offering.
Some suppliers who have collaborated with Tesla have indicated that the Model 2 project was genuine, and Tesla had even shared innovative cost-saving engineering ideas with them before deciding to postpone it in favor of launching the Robotaxi.
What led to this abrupt shift in strategy and the choice to move forward with the Model 2/Q, despite recent statements suggesting that it wasn't necessary, is still unclear.
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