Elon Musk is upping his ante on his full-bodied promises to make Tesla the leading provider of self-driving cars. At least two million vehicles of the specialized robotaxi model “Cybercab” will be built every year, “perhaps four million in the end,” said Musk when presenting fresh quarterly figures. He cautioned that the forecast was his “best estimate.” In addition, every current Tesla electric car will be able to drive autonomously anyway.
Musk reiterated that the robotaxi should be produced in larger quantities by 2026. However, he has repeatedly announced since 2016 that Tesla will soon have autonomous cars. But so far, Tesla’s “Autopilot” software, even in its advanced version, is only a driving assistance system in which the person behind the wheel remains responsible and must be ready to take control at any time.
Robotaxis from others already exist
Meanwhile, Google sister company Waymo is making more than 100,000 passenger trips per week in four U.S. cities without a human behind the wheel. However, Waymo’s Jaguars, which have been converted into self-driving cars, contain additional technology costing more than $100,000, making it harder to make money with them.
Musk, on the other hand, hopes to create self-driving cars with only cameras instead of more expensive laser radars. If this were successful, Tesla would have an enormous cost advantage – and several million vehicles capable of this would already be on the road. However, many industry experts doubt whether this is even reliably possible.
Driving service app in internal testing
Tesla is already internally testing an automated driving service for employees in Silicon Valley, but with safety drivers at the wheel. The announcements electrified investors despite the many deadlines that have passed in the past: Tesla shares rose by more than 17 percent at times in early US trading on Thursday.
The “Cybercab” prototype presented by Musk at a show in Hollywood about two weeks ago had neither a steering wheel nor pedals. According to current US rules, such vehicles can only be brought onto the roads in small numbers with special permission. Additionally, regulations for self-driving cars vary from state to state.
Musk relies on proximity to Trump
However, Musk’s support for ex-President Donald Trump, who wants to move back into the White House, could come into play here. Trump had promised to put Musk at the head of a committee to control government spending if he won the election. If that happens, he will work to ensure that there is a nationwide regulation for the approval of autonomous cars, “for everyone, not just for Tesla,” said Musk. He reiterated that self-driving Teslas should be on the road in Texas and California next year.
Sales boost due to cheaper model 2025
Musk ultimately wants to bring a cheaper Tesla model onto the market in the first half of 2025. That will boost sales growth to 20 to 30 percent next year, at least as long as there is no “big war” or “sky-high interest rates,” he said. Tesla has repeatedly increased sales rapidly – but in 2024 it is unclear whether deliveries will fall below the previous year’s mark of a good 1.8 million vehicles.
“Cybertruck” sales are increasing
In the last quarter, deliveries rose by six percent to almost 463,000 vehicles. The lion’s share of this, around 440,000 cars, was made up of the cheaper Models 3 and Y. However, the new electric pickup “Cybertruck” now follows them in third place in the ranking of electric vehicles sold in the USA, Tesla announced without providing a specific sales figure.
In terms of quarterly sales, Tesla narrowly missed analysts’ forecasts. Revenues rose by eight percent year-on-year to just under $25.2 billion. An average of around $25.4 billion was expected on the market. The money that Tesla earns from selling CO2 certificates to car manufacturers with combustion engines also played a role. In the pure car business, sales rose by two percent to a good $20 billion.
The bottom line is that Tesla profits rose by 17 percent year-on-year to around $2.17 billion. Adjusted earnings per share were 72 US cents – while analysts had only expected 58 US cents.
