Elon Musk Unveils ‘Cybercab’ Robotaxi

Tesla CEO Elon Musk on Thursday unveiled a long-awaited robotaxi featuring two gull-wing doors and no steering wheel or pedals, and he surprised the audience by also introducing a “robovan.” This shift in focus highlights Musk’s bet on transitioning from affordable mass-market cars to autonomous vehicles.

At the event, held at Warner Bros. studios near Los Angeles, Musk arrived on stage in a “Cybercab,” which is expected to go into high-volume production in 2026 and be priced under $30,000. He later presented the robovan, capable of carrying up to 20 passengers, but provided limited details.

Although Musk is known for missing timelines—acknowledging his optimistic projections—he did not specify how quickly Tesla could scale robotaxi production, clear regulatory hurdles, or compete with other robotaxi companies like Alphabet’s Waymo.

Analysts and experts noted that creating a widespread robotaxi network could take years, especially given challenges with safety and reliability in difficult driving conditions.

Previously, Musk had said Tesla would operate a fleet of self-driving taxis that users could hail via an app, and Tesla owners could list their vehicles as robotaxis to earn money. However, he did not mention the app during Thursday’s event, titled “We, Robot,” likely a nod to Isaac Asimov’s “I, Robot” science fiction stories.

Musk claimed that operating the Cybercab will cost 20 cents per mile, with inductive charging eliminating the need for plugs. He said Robovans would be even cheaper to run, at just 5 cents per mile. Unlike other robotaxi competitors that rely on hardware like lidar, Tesla’s vehicles will use AI and cameras—an approach flagged as technical and regulatory challenges.

Also Read: Tesla plans to build affordable electric vehicles

Musk also shared updates on Tesla’s humanoid robot, “Optimus,” which he said could eventually be priced between $20,000 and $30,000 and handle many daily tasks.

Musk had projected in 2019, stating  that Tesla would have operational robotaxis by 2020. However, this year he shifted focus to the Cybercab and scrapped plans for a smaller, more affordable car, which was seen as crucial for countering slowing demand for electric vehicles (EVs).

Several companies attempting to crack the robotaxi market have incurred billions in losses, forcing some to shut down. Currently, Alphabet’s Waymo is the only U.S. company operating uncrewed robotaxis that collect fares, while other companies like Amazon’s Zoox and GM’s Cruise continue to test their autonomous vehicles.

While Tesla’s Full Self-Driving (FSD) technology still requires constant driver supervision, Musk said they expect fully autonomous, unsupervised FSD operations to begin in Texas and California next year with the Model 3 and Model Y. However, he did not clarify if the Cybercab would use FSD or another technology.

Jessica Caldwell, head of Edmunds, praised Musk for presenting an exciting vision of future transportation but noted that many questions remain about how this vision will be practically achieved.

REUTERS/Chidimma Gold