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Home / Business / Elon Musk said Tesla wants to have 1 million robo-taxis next year

Elon Musk said Tesla wants to have 1 million robo-taxis next year



Elton Musk unveiled grand plans for Tesla's network of robo-taxis on Monday, with his sights on a million autonomous electric vehicles shuttling within a year.

"I feel very confident predicting 1 million autonomous robotic taxis for Tesla next year," Musk told a Room of Investors and Wall Street analysts at the company's Palo Alto, California, headquarters.

Tesla estimates the cost of running a robo-taxi on the " Tesla Network, on which the company says all Tesla owners want to be able to add their cars, is less than $ 0.18 a mile. Tesla went on to predict that a sample fare of $ 1 million would translate to $ 30,000 in annual profit for a single car. That would add up to $ 30 billion Musk predicted would soon be running.

Tesla
Tesla

"Musk's presentation explains the revenue breakdown as Tesla envisions." In Tesla Tesla network and Tesla would take 15 or 20% of the revenue. "

Autonomy is key for ride-hailing, and not just for Tesla. Uber and Lyft, the two largest companies in the space, are spending huge chunks of their revenue on paying drivers. Many Wall Street analysts have suggested that with self-driving cars, that expense could be minimized, giving both companies a gateway to profitability.

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Musk's vision. The billionaire, after all, has a track record of making grandiose promises that do not pan out on the same scale or timeline. Jim Cramer of CNBC's "Fast Money" went so far as to compare to the circus leader PT Barnum.

Wall Street analysts were so underwhelmed.

"The Tesla Network robotaxi plans seemed to have come to fruition," said Jeff Osborne, an analyst at Cowen said in a note to clients on Tuesday.

"We see the focus on FSD as a desperate attempt to convince Tesla car buyers to pay the $ 8,000 for the 'FSD' option, even though the company acknowledges the software does not work and they will have a new next-gen solution in ~ 2 years. "

More from Tesla's autonomy day event:


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