Musk and Tesla unveil the long-awaited “Cybercab” robot taxi

Tesla unveiled its long-awaited robotaxi at a Hollywood studio on Thursday evening, although fans of the electric vehicle maker will have to wait at least until 2026 before it becomes available.

CEO Elon Musk pulled up to a stage on the Warner Bros. studio lot in one of the company's “cybercabs” and told the crowd that the sleek, AI-powered vehicles had no steering wheels or pedals. He also expressed confidence in the progress the company has made in autonomous driving technology, which allows vehicles to drive without human intervention.

However, investors don't seem too impressed. Shares of Tesla Inc. plunged 9% at the opening bell on Friday, a sign that the event did not have the success it was intended to be. Despite a slight rebound, Tesla shares remained down about 8% as of 1:30 p.m. Eastern Time on Friday.

Tesla began selling the software called “Full Self-Driving” nine years ago. However, there are doubts about its reliability.

Cybercab release date predictions

Tesla expects the cybercabs to cost less than $30,000, Musk said at the event. He estimated the vehicles would be available in 2026, then added “before 2027.”

“We will move from attended, fully autonomous driving to unattended, fully autonomous driving, where you can fall asleep and wake up at your destination,” Musk said. “It will be a glorious future.”

For those eager for Cybercabs to become a reality, another two years may sound like a long wait, but given the current state of FSD software, the timeline seemed unlikely to some analysts.

“The leap from where we are today to full autonomy (particularly through unattended vehicles without steering or pedals) is so technologically gigantic that it feels overly ambitious in such a short period of time,” said Jessica Caldwell, head of insights at Edmunds a note.

“For vehicles like the robotaxi to become part of the everyday consumer experience before 2027, regulatory approval and strong public buy-in are required because public safety is an important issue,” she added.

“If they want to eventually get to robotaxis, they will first have to succeed with the unattended FSD in the current lineup,” said Seth Goldstein, equity strategist at Morningstar Research. “The event (Tesla’s Robotaxi) showed that they are ready to take this step forward.”

The company also expects Full Self-Driving technology to be available in its popular Model 3 and Model Y in Texas and California next year.

Tesla had around 20 cybercabs on site and offered event participants the opportunity to take rides on the film studio lot – not on the streets of Los Angeles.

“Seeing Cybercab up close is very impressive and the pricing of this vehicle will create a fleet segment that could be a $10 billion annual business at scale for Tesla in the coming years,” said Daniel Ives, chief executive and senior equity analyst at Wedbush Securities issued a research note on the Robotaxi event.

Ives said he was “very positive” about the future of the Cybercab. “Regulatory approval, insurance and the details of this Cybercab launch will continue to be a debate on the road and present some timing challenges that Tesla will need to overcome to meet this next step in growth/the future of transportation,” he added.

From electric vehicles to “We, Robots”

At the presentation, titled “We, Robot,” and live on Tesla’s website and

The company also introduced some of its black-and-white Optimus humanoid robots, which walked a few feet away from attendees before performing dance moves in a futuristic-looking pavilion.

Musk estimated the robots would cost between $28,000 and $30,000 and would be able to babysit, mow lawns and fetch groceries, among other tasks.

“Whatever you can think of will work,” he said.

The Cybercab's unveiling comes as Musk is trying to convince investors that his company is betting more on artificial intelligence and robotics as it struggles to sell its core products, an aging lineup of electric vehicles.

Tesla's model lineup is struggling and isn't expected to be updated until late next year at the earliest, TD Cowen analyst Jeff Osborne wrote in a research note last week.

Osborne also noted that, in TD Cowen's opinion, the “politicization of Elon” is damaging the Tesla brand among Democratic buyers in the US

Musk has supported former president and Republican presidential candidate Donald Trump and promoted many conservative causes. Last weekend he did joined Trump at a rally in Pennsylvania.

Musk has said for more than five years that a fleet of robot taxis is on the horizon that would allow Tesla owners to make money by letting their cars transport passengers while they are not being used by their owners.

However, he admitted that previous forecasts for the use of autonomous driving had proven to be too optimistic. In 2019, he promised the fleet of autonomous vehicles by the end of 2020.

The announcement comes as U.S. safety regulators are conducting investigations into Full Self Driving and Autopilot, based on evidence that the system has a weak system for ensuring the attention of human drivers.

In addition, the US National Highway Traffic Safety Administration forced Tesla to recall Full Self-Driving in February because it enabled speeding and violated other traffic rules, especially near intersections. Tesla should fix the problems with an online software update.

According to authorities, a fully automated Tesla struck and killed a motorcyclist last April in Snohomish County, Washington, near Seattle. The Tesla driver told authorities he was using the system while looking at his phone when the car struck the motorcyclist. The motorcyclist was pronounced dead at the scene, authorities said.

NHTSA says it is evaluating information about the fatal crash involving Tesla and law enforcement.

The Justice Department has also asked Tesla for information on fully autonomous driving and Autopilot, as well as other topics.