Tesla unveils its long-awaited robotaxi despite doubts about the technology it runs on

DETROIT – Expectations are high for the long-awaited unveiling of Tesla's robot taxi in a Hollywood studio on Thursday evening. Too high for some analysts and investors.

The company, which began selling software nine years ago called “Full Self-Driving,” which still cannot drive itself, is expected to unveil the so-called “Cybercab” vehicle, which may not have a steering wheel or pedals.

The revelation comes as CEO Elon 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.

Some analysts expect this to be a historic day for the Austin, Texas company as it takes a big step toward a long-awaited robotaxi service powered by AI.

But others who pursue self-driving vehicles say Musk has not yet proven that Tesla's system can drive safely without a human driver willing to intervene to prevent accidents.

“I don't know why the headlines continue to be, 'What is Tesla going to announce?' instead of 'Why does Tesla think we're so stupid?'” said Bryant Walker Smith, a law professor at the University of South Carolina who studies autonomous vehicles.

He doesn't believe Tesla will be able to present software and hardware that works without human supervision, even in a limited area well known to the driving system.

“We just haven’t seen any signs that Tesla is working toward that,” Walker Smith said. “If they were, they wouldn’t be presenting this in a gated lot, but in a real city or on a real highway.”

Without a clear breakthrough in autonomous technology, Tesla will simply present a vehicle without pedals and a steering wheel, which numerous other companies have already done, he said.

“The challenge is to develop a combination of hardware and software and the human and digital infrastructure to actually drive a vehicle safely on public roads and in all conditions, even without a steering wheel,” said Walker Smith. “Tesla has shown us this demo every year and it doesn’t reassure us.”

Many industry analysts also don't expect much from the event. While TD Cowen's Jeff Osborne expects Musk to unveil the Cybercab and perhaps the Model 2, a lower-cost electric vehicle, he said he doesn't expect major changes to self-driving technology.

“We expect the event to be light on details and to appeal to Tesla’s true, long-time supporters,” Osborne wrote in a note. However, Musk's claims about the readiness of Full Self Driving will be critical “given past delays and ongoing review” of the system and Tesla's less sophisticated Autopilot driver assistance software.

Tesla's model range has problems and is unlikely to be updated until the end of next year at the earliest, Osborne wrote. He also wrote that TD Cowen believes the “politicization of Elon” is damaging the Tesla brand among Democratic buyers in the US

Musk has supported Republican presidential candidate Donald Trump and promoted many conservative causes. Last weekend he accompanied 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 carry passengers while they are not being used by the 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.

However, Wedbush analyst Dan Ives, who is bullish on Tesla stock, wrote in an investor note that the Robotaxi event, which the company calls “We, Robot,” will be a new chapter of growth for Tesla.

Ives expects Tesla to provide many updates and details about the robotaxi, as well as breakthroughs in the areas of full self-driving and artificial intelligence. He's also looking for a phased strategy for rolling out robotaxis within the next year, as well as a Tesla ride-sharing app and demonstrations of technology “designed to revolutionize urban transportation.”

Ives, whose organization will attend the invitation-only event at the Warner Bros. studio, wrote that he also expects updates to Tesla's humanoid robot Optimus, which the company plans to start selling in 2026.

“We believe this is a pivotal time for Tesla as the company prepares to release its year-old Robotaxi R.”&D shadowed behind the curtains while Musk & Co. lays out the company’s vision for the future,” Ives wrote.

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.

Additionally, the U.S. National Highway Traffic Safety Administration forced Tesla to recall Full Self-Driving in February because it allowed speeding and violated other traffic rules, particularly 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 rear-ended 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.