Tesla to Unveil Robotaxi Plans as Analysts Question Profitability – The European Business Review
Tesla CEO Elon Musk is set to reveal details about the company’s long-awaited autonomous taxi fleet on October 10, a project he claims could boost Tesla’s value tenfold. However, analysts remain cautious about the timeline and profitability of the venture. RBC Capital Markets analyst Tom Narayan noted that while Tesla’s robotaxi plan is exciting, it may take years to become a profitable business.
Tesla would face competition from Google’s Waymo, which operates autonomous taxis in several U.S. cities. Waymo’s operational costs, including vehicle ownership, maintenance, and equipment, pose economic challenges that Tesla will need to overcome. While Amazon’s Zoox is developing purpose-built autonomous vehicles, high costs remain a barrier.
Despite uncertainties, Tesla’s data advantage from millions of drivers could be an asset. Narayan predicts robotaxis and self-driving subscriptions will play a significant role in Tesla’s future, contributing to half of the company’s valuation.
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