financetom
Business
financetom
/
Business
/
Tesla promises paid robotaxis next year, but significant hurdles remain
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Tesla promises paid robotaxis next year, but significant hurdles remain
Oct 26, 2024 10:52 AM

(Reuters) - Tesla CEO Elon Musk on Wednesday said the electric vehicle maker will roll out driverless ride-hailing services to the public in California and Texas next year, a bold claim likely to face significant regulatory and technical challenges.

"We think that we'll be able to have driverless Teslas doing paid rides next year," Musk said on Tesla's quarterly earnings call. He said Tesla currently offers an app-based ride-hailing service to employees in the San Francisco Bay Area.

His statement doubled down and expanded on a pledge he made at Tesla's robotaxi unveiling two weeks ago, where he said he expected to roll out "unsupervised" self-driving in certain Tesla vehicles in 2025. The lack of a business plan around the robotaxi at that event sent its stock plunging.

On Wednesday, however, Tesla won back some investor confidence by forecasting a jump in vehicle sales next year.  

In California, in particular, the company will face an uphill climb in securing the needed permits to offer fully autonomous rides to paying customers. 

Alphabet's Waymo, which offers paid rides in autonomous vehicles in the Bay Area and Los Angeles, as well as in Phoenix, Arizona, spent years logging millions of miles of testing before it received its first permit from the California Public Utilities Commission (CPUC), which regulates ride-hailing services.

The California Department of Motor Vehicles, which regulates testing and deployment of autonomous vehicles in the state, told Reuters that Tesla last reported using its autonomous vehicle testing permit in 2019. That permit requires a safety driver.

The company does not have, and has not applied for, a testing permit without a driver, the agency said.

Tesla did not respond to a request for comment.

As for the ride-hailing service in the Bay Area for employees, CPUC said Tesla does not need a permit, because employees are not considered passengers.

At Tesla's robotaxi event on Oct 10, Musk unveiled a two-seater, two-door "Cybercab" without a steering wheel and pedals that would use cameras and artificial intelligence to navigate roads.

On Wednesday, he acknowledged the potential difficulties in California, saying "it's not something we totally control," but adding "I would be shocked if we don't get approval next year."

Texas has far fewer regulatory requirements for autonomous vehicles than California, but companies often test for months or years before deploying paid services.

Tesla's advanced driver assistance system, called Full Self-Driving (FSD), which is the bedrock for Tesla's robotaxi ambitions, has faced questions from regulators.

Last week, the U.S. National Highway Traffic Safety Administration (NHTSA) opened an investigation into 2.4 million Tesla vehicles equipped with FSD after four reported collisions, including a 2023 fatal crash.

Still, the idea of Tesla rolling out a robotaxi fleet sent shares of ride-hailing apps down 2.3% in post-market trading.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Coty sees annual profit at low end of forecast as mass beauty demand slows
Coty sees annual profit at low end of forecast as mass beauty demand slows
Nov 9, 2024
(Reuters) - Coty ( COTY ) on Wednesday said it expects annual profit to come in at the low end of its forecast, as weak demand for beauty products in major markets such as the United States and Australia offset gains in the fragrance segment. The beauty industry, mainly in the United States, is witnessing a slowdown in demand even...
Energy Transfer's Q3 profits jump as it transports record volumes of crude
Energy Transfer's Q3 profits jump as it transports record volumes of crude
Nov 9, 2024
HOUSTON, Nov 6 (Reuters) - Midstream company Energy Transfer ( ET ) reported higher third quarter profit on Wednesday as it transported record volumes of crude oil on its systems. The Texas-based company reported net income of $1.18 billion versus $584 million in the third quarter of last year. The company saw exported crude volumes jump 49% compared with the...
Arm Holdings Q2 Earnings: Revenue Beat, EPS Beat, AI Creating New Opportunities And More
Arm Holdings Q2 Earnings: Revenue Beat, EPS Beat, AI Creating New Opportunities And More
Nov 9, 2024
Arm Holdings Plc ( ARM ) – ADR reported second-quarter financial results after the market close on Wednesday. Here’s a look at the key metrics from the quarter. Q2 Earnings: Arm reported second-quarter revenue of $844 million, beating analyst estimates of $808.37 million, according to Benzinga Pro. The chip designer reported adjusted earnings of 30 cents per share, beating analyst...
Diagnostics firm Qiagen reports rise in third-quarter revenue
Diagnostics firm Qiagen reports rise in third-quarter revenue
Nov 9, 2024
Nov 6 (Reuters) - Qiagen ( QGEN ) reported a rise in third-quarter revenue on Wednesday, owing to strong sales of its diagnostic devices. The company's third-quarter net sales rose 6% to $502 million at constant exchanges rates (CER), which was above its forecast of at least $495 million CER. Diagnostics firm Qiagen ( QGEN ) said the sales growth...
Copyright 2023-2026 - www.financetom.com All Rights Reserved