Tesla CEO Elon Musk Unveils 'Cybercab' Robotaxi, Promises Revolution in Urban Transport

SAN FRANCISCO, Oct 11 (Reuters) - Tesla Inc (TSLA.O) CEO Elon Musk on Wednesday unveiled the company’s new ‘Cybercab’ robotaxi, a fully autonomous electric vehicle aimed at revolutionizing urban transportation and reducing congestion in major cities worldwide.

Speaking at a highly anticipated event in Fremont, California, Musk introduced the futuristic vehicle, which features a minimalist design and no steering wheel or pedals. The CEO described the Cybercab as a "key step toward realizing Tesla’s long-term goal of sustainable, shared mobility," adding that the robotaxi could enter production as early as 2025.

“Cybercab represents the future of personal transportation,” Musk said to a cheering audience. “It’s a car built specifically for autonomy, with safety and efficiency at its core.”

The announcement marks Tesla’s latest push into self-driving technology as it seeks to compete with rivals like Waymo, the self-driving unit of Alphabet Inc (GOOGL.O), and General Motors Co’s (GM.N) Cruise. Musk claimed that the Cybercab’s enhanced Full Self-Driving (FSD) system, which uses advanced neural networks and new sensor hardware, will enable the vehicle to navigate complex urban environments without human intervention.

Tesla did not disclose a price point for the Cybercab but indicated that it plans to offer the service through a ride-hailing app, which would allow users to summon rides similarly to how they use platforms like Uber and Lyft. According to Musk, the robotaxi fleet will have operating costs “significantly lower” than those of traditional taxis, potentially disrupting the urban mobility market.

The announcement comes at a time when Tesla is under scrutiny from regulators over the safety of its existing self-driving features. Last month, the National Highway Traffic Safety Administration (NHTSA) opened a probe into multiple accidents involving Tesla’s Autopilot system.

Musk addressed the concerns briefly, asserting that safety remains Tesla’s highest priority. “Every Cybercab will be equipped with redundant safety systems and undergo rigorous testing before deployment,” he noted.

Shares of Tesla rose 3.5% in after-hours trading following the announcement, reflecting investor optimism over the company’s latest innovation. Analysts, however, remain cautious about the timeline and regulatory hurdles.

“Tesla has ambitious goals, but the path to fully autonomous robotaxis is fraught with challenges,” said Dan Ives, an analyst at Wedbush Securities. “Execution and regulatory approval will be key.”

If successful, the Cybercab could have wide-reaching implications for urban planning and transportation economics, potentially leading to a significant reduction in car ownership and reshaping the future of cities.

Tesla is expected to provide more details on the rollout strategy for Cybercab during its annual shareholder meeting in December.