What's Happening?
Tesla CEO Elon Musk announced during the company's quarterly earnings call that Tesla plans to allow owners of its vehicles to add their cars to the company's robotaxi network starting next year. This initiative aims to expand Tesla's robotaxi service, which launched last month in Austin with a limited number of self-driving vehicles owned by Tesla. The company is working to catch up with industry leader Waymo, which operates self-driving robotaxis in several U.S. cities. Tesla's revenue fell 12% year-over-year to $22.5 billion, attributed to a slump in vehicle deliveries and falling prices. Musk emphasized the focus on safety in Austin, where operations began with a safety driver in the passenger seat.
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Why It's Important?
The expansion of Tesla's robotaxi network to include customer-owned vehicles could significantly impact the ride-hailing industry by increasing the availability of self-driving cabs. This move may offer Tesla owners a new revenue stream by renting out their cars as autonomous taxis. However, it raises questions about regulatory and liability issues, as well as the technological challenges of ensuring safety without a driver. The initiative could also influence Tesla's market position, as it seeks to compete with established players like Waymo. The decline in Tesla's revenue highlights the challenges the company faces, including political controversies involving Musk.
What's Next?
Tesla plans to seek regulatory approval to expand its robotaxi service to the Bay Area, Nevada, Arizona, and Florida. Musk expressed confidence that autonomous ride-hailing could be available to half of the U.S. population by the end of the year, pending safety and regulatory approvals. The company aims to prove the safety of its autonomous vehicles before launching the service more broadly. Tesla's CFO reported no major safety incidents in Austin since the robotaxi service began, with Teslas driving 7,000 autonomous miles since June.
