Elon Musk reveals Tesla's upcoming Robotaxi and a Robovan concept in push for automation

Elon Musk has revealed a much-awaited prototype of a Tesla robotaxi - the Cybercab - which will go into production in 2026 and priced below $30,000, at the company’s 'We, Robot' event on October 11.

Robotaxis are self-driving taxis aimed at transporting passengers autonomously.

Tesla's Robotaxi featured with two gull-wing doors and no steering wheel or foot pedals. "You're just sitting in a comfortable little lounge, and you can do whatever you want while you're in this comfortable little lounge, and when you get out, you will be at your destination," Musk said at the event.

Musk also unveiled a futuristic concept called Robovan, which could transport 20 people at a time, in a potential pivot to become a robotics manufacturer.

The passenger vehicle 'Robovan' carried no steering wheel or pedals, and promises to seat up to 20 people or could be converted to carry goods. Musk did not share any details about production timeline for Robovan.

Robovans are expected to offer autonomous deliveries, streamlining logistics, and cut down on operational costs for last-mile deliveries.

“Probably, well I tend to be little optimistic on timeframes, but in 2026,” Musk said, “Before 2027, let me put it that way.” Musk also showcased Tesla's Optimus humanoid at the event along with other driverless, autonomous models.

The cars will rely on AI and cameras and would not need hardware that other robotaxi rivals are deploying, Musk said. The cars would be charged wirelessly using inductive technology, and Musk said they would be '10 to 20 times safer' than a car driven by any human.

Musk told analysts and audiences at the event that Tesla aims to commence "fully autonomous, unsupervised" driving in Texas and California in 2025 with existing models, and start production of the "cybercab" in 2026.

“The only specific was the $30,000 for a Cybercab,” Bloomberg News quoted Nancy Tengler, CEO of Laffer Tengler Investments and a Tesla investor. “The concepts were all grand. Is the idea super cool? Absolutely.”

"Everything looks cool, but not much in terms of time lines, I'm a shareholder and pretty disappointed. I think the market wanted more definitive time lines," Reuters quoted Dennis Dick, equity trader at Triple D Trading.

Musk's ambitious timelines on automation in mobility have often faced criticism in the past. He has for the first time said in 2016 that automated cars were only two years away, and later on promised an autonomous vehicle by 2019.