Tesla unveils 20 cybercabs at We, Robot event and says you can buy one for less than $30,000

Tesla has finally unveiled its Cybercab, and it looks like a smaller, sleeker Cybertruck. And while many expected there would be at least one prototype robot taxi without a steering wheel or pedals, Tesla boss Elon Musk delighted his fans with a lineup of 20 vehicles.

The eye-catching “We, Robot” event took place on Thursday at the Warner Bros. Discovery Studio. Before taking the stage, Musk walked to a robotaxi that opened its suicide doors and led a brief demo through the manicured streets of the Hollywood studio.

Musk repeated previous claims that the cost of autonomous transportation will be so low that it will amount to “individualized mass transportation.” He said he expects the Cybercab's average operating cost to be about $0.20 per mile over time.

“And you will be able to buy one,” Musk said, adding that the cost would be under $30,000.

Musk also noted that he expects Tesla to begin “unsupervised FSD in Texas and California” on the Model 3 and Model Y next year. He acknowledged that he was overly optimistic about the timelines, but said he expected the Cybercab to enter production by 2026 or “before 2027.”

Fans cheered when Musk said they could test the cybercabs themselves at the event.

The robotaxi also does not have a plug, but rather “inductive charging,” according to Musk.

Tesla was originally scheduled to unveil its Robotaxi, or Cybercab, in August, but delayed the unveiling after the chief executive called for a “major design change at the front.”

The unveiling of the robotaxi is part of Tesla's push to “go all out for autonomy” this year, after the company stopped prioritizing production of a $25,000 electric vehicle and laid off 10% of its staff, including most of the Loading teams have deviated. But Musk's vision of an autonomous driving future has been in play for years and is a big part of the reason why investors value Tesla stock not as a car maker but as a technology company.

The Cybercab prototype represents half of the business concept Musk has been developing since at least 2019. The automaker plans to operate its own fleet of dedicated robotaxis on a Tesla ride-hail app, which Tesla announced during its investor call in the first quarter.

Musk has described the other half of the strategy as similar to Uber or Airbnb, where Tesla owners can add their appropriately equipped vehicles to Tesla's ride-hailing app to earn extra money when the cars are not in use, and Tesla takes over 25 % to 30% of sales (similar to Apple's App Store take rate). Musk also said that Tesla expected robotaxi rides to cost less than public transportation, but did not say by when.

“By the middle of next year we will have over a million Tesla cars on the road with full self-driving hardware and features, at a level of reliability that we expect no one needs to pay attention to, which means “You can drive to sleep,” Musk said at Tesla’s Autonomy Day 2019. “From our perspective, if you fast forward a year, maybe a year and three months, but next year we will have over a million robotaxis on the road for sure. The fleet awakens with an over-the-air update. That’s all it takes.” Of course, that hasn’t happened by 2020.

Tesla's Full Self-Driving software, used in hundreds of thousands of vehicles today, relies solely on cameras to perceive the surroundings. Industry experts say this purely visionary approach is the reason the software, despite its name, still doesn't provide fully autonomous driving. FSD can take over many of the tasks of automated driving, but still requires a human behind the wheel to remain alert and take over when necessary.

It's also not clear whether existing Teslas even have the right hardware to move toward the fully self-driving future that Musk has been promising for years. Like Musk in July

Regardless, Tesla will need to demonstrate safety proof if it wants to commercialize Level 4 autonomous driving – meaning the vehicle can drive itself under certain conditions without a human having to take control. Tesla has faced numerous federal investigations into fatal accidents that occurred while Autopilot, Tesla's sub-advanced driver assistance system, was operating. California has the most stringent approval process for testing and deploying autonomous vehicles. However, in most other states, Tesla would at least have to prove that its vehicles are capable of getting themselves to their destination safely.

Then there's the problem that the Cybercab doesn't have steering wheels or pedals, which would make it non-compliant with federal vehicle safety laws. GM's Cruise had previously attempted to put its purpose-built robotaxi, the Origin, into production, but was unable to obtain the necessary approvals from the National Highway Traffic and Safety Administration before scrapping the project.

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