It’s a big day for Tesla fans. CEO Elon Musk will introduce several prototypes of autonomous driving taxis at an event for reporters and analysts.
The event has been entitled “We, Robot,” a take-off on Isaac Asimov’s “I, Robot” stories. The prototypes are Teslas but with one distinct difference. It’s not necessary to have someone behind the wheel.
In previous comments, Musk promised the new vehicles will usher in a new mode of transportation. People who get from point A to Point B in a vehicle that knows where they are and where they are going.
“As exciting as the Robotaxi concept is, investors who are expecting it to alter Tesla's financials in the short term will be disappointed,” iSeeCars Executive Analyst Karl Brauer told ConsumerAffairs.
Brauer says Musk is aware that his company’s future isn’t based on electric vehicle sales and profit, especially with the ever-growing, profit-slashing threat of China's EV cost structure. In other words, Musk needs a game-changer.
“Tesla needs a paradigm shift in financial opportunity, which is why Elon's focus has shifted away from updating Tesla’s current product line and toward the Robotaxi,” Brauer said. “If Tesla can breach the self-driving barrier and implement a business model around that technology first, it will be a game changer for the brand and the industry.”
Hiccups are to be expected
Perfecting a self-driving vehicle isn’t easy. Other companies have experienced hiccups along the day. Brauer says Tesla should be prepared for hurdles as well.
“Elon is throwing a lot of money and energy into his Dojo supercomputer to solve the complexities of self driving technology,” he said. “But the process of getting self-driving cars through the regulatory hurdles and onto the street in meaningful numbers will take time, even if Elon were to deem the technology ready for public consumption this week.”
There could be plenty of unforeseen setbacks as well. If there is another fatal accident involving a self-driving car it could halt progress for years.
“Elon’s Robotaxi represents a potential paradigm shift in the transportation industry, but it’s not going to happen overnight,” Brauer said.