Tag: Tesla

Company Check : Tesla Repositions Its Future Around Robots Rather Than Cars

Posted on by Paul Stradling

Tesla confirmed it was winding down parts of its car business as Elon Musk publicly repositioned the company around humanoid robots, artificial intelligence and autonomy rather than electric vehicles alone.

Tesla Drops Model S And X As Focus Shifts Beyond Cars

Tesla has said it will end production of the Model S and Model X and repurpose the manufacturing space at its Fremont, California plant to build its Optimus humanoid robots, marking the clearest signal yet that the company’s future strategy is moving away from premium car models.

Speaking on Tesla’s latest earnings call, Elon Musk said the space currently used to build the two vehicles would be converted into an Optimus production facility, with a long-term ambition of producing up to one million robots a year at the site. He described the change as part of Tesla’s broader shift towards what the company now calls “physical AI”.

The Model S and Model X were once central to Tesla’s rise, helping establish the brand in the early and mid-2010s. In recent years, however, both vehicles had become low-volume products compared with the Model 3 and Model Y, which now account for the majority of Tesla’s car sales.

Tesla said it would continue supporting existing Model S and Model X customers despite the end of production.

Why Tesla’s Core EV Business Came Under Pressure

The strategic change of direction came after a difficult year for Tesla’s automotive business, shaped not only by market conditions but also by growing scrutiny of Elon Musk’s leadership and public profile. The company reported total revenue fell 3 per cent in 2025, its first annual decline in revenue, while vehicle deliveries dropped by about 9 per cent to roughly 1.64 million cars worldwide.

The slowdown was particularly visible at the end of the year, with Tesla saying deliveries fell around 16 per cent year on year in the fourth quarter, reflecting weaker demand, intensifying competition and the impact of reduced government incentives in the United States. Analysts also pointed to rising unease among parts of Tesla’s traditional customer base following Musk’s increasingly high-profile political involvement, which included public support for US President Donald Trump and a senior cost-cutting role in his administration.

During the same period, China-based BYD overtook Tesla as the world’s largest seller of battery electric vehicles by volume, reporting more than 2.25 million BEV sales in 2025, up almost 28 per cent year on year. Chinese manufacturers including BYD, Geely and MG continued to pressure Western carmakers by offering a wider range of lower-priced models, while Tesla faced criticism for a relatively ageing vehicle line-up and a slower pace of major new car launches.

Tesla’s earnings update showed that while automotive revenue weakened, other parts of the business performed more strongly, with energy generation and storage revenue rising about 25 per cent year on year in the fourth quarter and services revenue increasing around 18 per cent, highlighting areas of growth beyond car sales as the company recalibrated its strategy.

How Musk Reframed Tesla’s Future Around Robots

Against that backdrop, Musk has been framing Tesla as an AI and robotics company rather than a car manufacturer. For example, in investor materials, Tesla described 2025 as a pivotal year in its transition from a hardware-led business to one centred on artificial intelligence deployed in the physical world.

Optimus

Optimus, Tesla’s humanoid robot programme first unveiled in 2021, has now become central to that narrative. Tesla said the robot is already performing limited tasks inside its factories, such as sorting objects and handling materials, though it remains far from Musk’s long-term vision of a general-purpose household robot.

In fact, Musk has repeatedly claimed Optimus could eventually perform a wide range of jobs, from factory work to domestic tasks, and has described it as more significant to Tesla’s future than vehicles over time. At the World Economic Forum in January, he said Tesla would probably begin selling humanoid robots to customers by the end of 2027, once safety and reliability reached an acceptable level.

Tesla told investors it plans to reveal a third-generation Optimus design in early 2026, describing it as the first version intended for mass production, with manufacturing expected to begin before the end of that year.

The Financial Stakes Behind The Robot Push

The move towards robotics also carries major financial implications for Tesla and Musk personally. For example, Tesla disclosed it had invested $2bn in Musk’s AI start-up xAI, while also signalling a sharp increase in capital spending, with guidance pointing to more than $20bn of investment in 2026.

That spending is expected to support multiple projects, including Optimus production, robotaxi development, battery manufacturing and AI infrastructure.

It’s worth noting here that Musk’s much publicised record-breaking pay package, approved by shareholders in late 2025, is also closely tied to Tesla delivering new growth drivers beyond car sales. Under the terms of the deal, Musk must significantly increase Tesla’s market value over the next decade, with Optimus and autonomous services positioned as central to that ambition.

Tesla has said its long-term targets include selling up to one million humanoid robots over ten years, a goal Musk has described as achievable if production and costs scale as planned.

Why Humanoid Robots Are A Riskier Bet Than EVs

Despite Tesla’s confidence, many experts view humanoid robots as one of the most difficult challenges in modern engineering. For example, unlike industrial robots designed for controlled environments, humanoids must combine balance, dexterity, perception and decision-making while operating safely around people in unpredictable settings.

Estimates of the potential market vary widely. Analysts at McKinsey have suggested a base-case market for general-purpose robotics of around $370bn by 2040, while other banks have forecast multi-trillion-dollar outcomes over longer timeframes if humanoids become widely adopted.

Supporters argue Tesla has relevant advantages, including experience in mass manufacturing, vertical integration across hardware and software, and expertise in motors and battery systems. Tesla has said those strengths allow it to iterate designs quickly and reduce costs as production scales.

However, critics say that the competitive landscape is far more crowded than when Tesla entered the EV market. For example, more than 90 companies are now developing humanoid robots, including established robotics firms, well-funded startups and technology giants supplying chips and AI platforms.

Questions have also been raised about whether consumer-facing humanoid robots will ever prove practical or affordable at scale, and whether Tesla’s ambitious timelines repeat a pattern seen in previous Musk-led projects, where public targets were missed or delayed.

Political Headwinds And Brand Risk

Tesla’s shift has unfolded alongside growing political and reputational challenges. For example, as noted earlier, Musk’s high-profile political involvement, including DOGE and his support for US President Donald Trump, has polarised public opinion and triggered protests and vandalism at Tesla dealerships in several countries.

Some investors and analysts have actually questioned whether that controversy could affect demand not only for Tesla’s cars, but also for any future consumer robot products, particularly if Optimus is positioned for home use.

Musk has acknowledged scepticism around Tesla’s ambitions but has maintained that the company is pursuing what it believes are the most important long-term technological opportunities, even if progress takes longer than expected.

What Does This Mean For Your Business?

Tesla’s decision to scale back parts of its car business in favour of robotics and AI signals a clear attempt to reset its long-term growth strategy. The move places Optimus and autonomous systems at the centre of Tesla’s future valuation, even though both remain technically complex, capital intensive and commercially unproven at scale.

For investors, suppliers and regulators, this has reframed Tesla less as a cyclical carmaker and more as a long-horizon technology bet, with outcomes likely to hinge on execution rather than vision alone. Success will require Tesla to solve problems in robotics that the wider industry has struggled with for decades, while managing near-term pressure on its automotive revenues and brand.

For UK businesses, the implications are more practical than speculative. For example, if humanoid robots move beyond pilot use in factories, logistics and warehousing, they could reshape labour planning, automation strategies and capital investment decisions over the next decade. At the same time, the uncertainty around timelines and costs reinforces the need for caution, with most analysts expecting meaningful deployment to arrive gradually rather than through rapid disruption.

More broadly, Tesla’s pivot shows how closely modern technology companies are now shaped by leadership choices, political context and investor expectations, not just product roadmaps. Whether Optimus becomes a transformative platform or an overextended ambition, Tesla’s repositioning reflects wider changes in how growth, risk and innovation are being recalibrated across the global technology and manufacturing landscape.

News : Tesla Applies for UK Energy Licence

Posted on by Paul Stradling

Elon Musk’s Tesla has applied for a licence to supply electricity to British homes and businesses, a move that could see the US-based firm directly enter the UK’s highly regulated energy market from 2026.

What Has Tesla Done?

The application was formally submitted on 25 July by Tesla Energy Ventures Limited, a UK-registered company under the wider Tesla umbrella. Ofgem, the UK’s energy regulator, confirmed the licence request on its website and set a consultation period until 22 August for stakeholders to submit comments. In line with the Utilities Act 2000, Ofgem has only published the notice of application, limiting further detail. If approved, the licence would allow Tesla to operate as a retail electricity supplier across England, Scotland and Wales.

Extend Scope of Existing Licence

It should be noted here that Tesla already holds a generation licence in the UK (granted in 2020) which allows it to produce electricity. However, this latest move could extend its scope to selling power directly to households and businesses, in the same way as established suppliers such as British Gas, Octopus Energy and OVO.

Why Is Tesla Doing This?

Tesla’s decision comes at a time when the company is facing declining electric vehicle sales across Europe. UK registrations in July fell by almost 60 per cent compared to the previous year, while German sales dropped by 55 per cent. Across ten key European markets, Tesla’s sales were down by 45 per cent. Competition from rival EV manufacturers, particularly China’s BYD, has been a major factor in this slump.

Diversifying into energy supply, therefore, offers Tesla another route to growth, particularly given its sizeable existing footprint. More than 250,000 Tesla vehicles are on UK roads and tens of thousands of its Powerwall home battery systems have been installed. This customer base could provide a ready pool of households willing to adopt Tesla’s electricity supply, particularly if bundled with discounts for charging vehicles or exporting stored solar energy back to the grid.

Like In Texas

The company has already built up experience as an energy supplier in the United States. In Texas, Tesla Electric launched in 2022 as a retail provider offering households low-cost, 100 per cent renewable power. Customers do not need to own a Tesla product to join, though EV owners and Powerwall users are offered cheaper charging rates and the ability to sell surplus electricity back to the grid.

The Texas operation also supports the concept of a “virtual power plant”, where thousands of home batteries are linked together to provide grid stability. Tesla has suggested that similar models could eventually be deployed in other markets. In the UK, this would align with National Grid’s push for more flexible energy resources and time-of-use tariffs that encourage households to use power at off-peak times.

What Could This Mean for the UK Market?

If the licence is granted, Tesla would join a market that is both competitive and tightly controlled. The so-called “Big Six” suppliers, now expanded to include Octopus alongside British Gas, EDF, E.ON, OVO, ScottishPower and SSE, still dominate with more than 90 per cent of the domestic supply market. Smaller and newer entrants have struggled in recent years, especially during the energy crisis, which saw dozens of challenger firms collapse under pressure from soaring wholesale prices.

Some analysts have pointed out that Tesla is entering a highly regulated market where profit margins are already thin and most of the big suppliers have invested heavily in smart tariffs, making it difficult for new players to break through. However, others have highlighted how Tesla’s existing ecosystem could help it stand apart. For example, despite falling EV sales, Tesla still has a sizeable footprint in the UK, with more than 250,000 cars sold and thousands of Powerwall batteries installed. That existing customer base could give Tesla a natural advantage if it follows the same model as its Texas business, where households are offered cheaper charging and paid for feeding power back into the grid.

Potential Tariff Innovation

One area where Tesla may compete effectively is in smart tariffs for EV charging and home energy storage. Between 2020 and 2023, Tesla partnered with Octopus Energy on the Tesla Energy Plan, a smart import-export tariff that allowed customers with solar panels and Powerwalls to buy and sell electricity at the same rate. Although Tesla later withdrew from the partnership, Octopus continues to offer a similar tariff, demonstrating demand for such arrangements.

If Tesla can combine its EVs, batteries and potential supply licence into a single integrated offer, it could appeal strongly to existing customers. For example, discounted tariffs for charging Teslas overnight, coupled with payments for sending energy back to the grid from a Powerwall, would create a closed-loop system that few other suppliers could match.

Challenges

Despite the potential, the barriers are considerable. The UK retail electricity market is crowded, margins are slim, and switching rates are low compared with the period before the energy crisis. Many households are locked into dual-fuel contracts that combine gas and electricity, which may make a Tesla-only electricity offer less attractive.

There is also the question of public perception. Elon Musk’s increasingly political public profile has drawn strong criticism in Europe and the UK. Also, he has described Britain as a “police state” and criticised asylum and migration policies. His closeness to US President Donald Trump (although they have since fallen out) and his actions with DOGE in the US have further polarised opinion and appear to have caused huge damage to his personal brand (and his vehicle sales). In fact, some consumer groups have warned that Musk’s views could influence whether households are willing to sign up for Tesla-branded energy.

Tesla itself has remained quiet on its application. The notice submitted to Ofgem was signed by Andrew Payne, Tesla’s head of energy for Europe, the Middle East and Africa. No public statement has been issued by the company, which has said only that it continues to expand its energy services globally.

What Does This Mean For Your Business?

Tesla’s bid to supply electricity in the UK sets up a clear test of whether its brand strength and integrated technology can overcome the realities of a tightly controlled market. On paper, its combination of cars, home batteries and solar solutions could give it an edge in offering customers genuinely joined-up energy services. In practice, it faces the same pressures that have squeezed margins for existing suppliers, alongside the added complication of public sentiment about its founder.

For UK households, the offer of cheaper EV charging or the ability to trade surplus solar power back to the grid would be attractive, particularly at a time when energy bills remain under close scrutiny. For businesses, Tesla’s entry could bring new tariff models for fleets or for sites already investing in renewable generation and storage. If the model mirrors what has been developed in Texas, it may also open the door for companies to participate in virtual power plants that improve resilience and provide income streams from energy flexibility.

For the energy sector, the move signals that disruption could just as easily come from a technology giant as from a nimble start-up. Incumbent suppliers will be watching closely, both for the pricing strategy Tesla adopts and for the way it leverages its hardware base to win loyalty. Regulators, meanwhile, will have to balance innovation with consumer protection in a market that has already seen waves of supplier failures.

Tesla is attempting to diversify at a time when its automotive business is under pressure, and the UK market will be an early test of whether energy supply can deliver the growth it now seeks. If it succeeds, it could accelerate the shift towards more dynamic and decentralised energy systems. If it fails, it will underline how difficult it remains to challenge the dominance of established players in one of Europe’s most heavily regulated markets.

Company Check – Tesla’s Robotaxi Rollout

Posted on by Paul Stradling

Tesla will tentatively begin offering public rides in driverless robotaxis in Austin, Texas on 22 June, according to Elon Musk, marking the long-delayed debut of a service he first promised back in 2019.

A Delayed Vision Finally Approaches Reality

Tesla (and SpaceX) boss Elon Musk has been claiming for years that fully autonomous Teslas were just around the corner. For example, in 2019, he said Tesla would have a million driverless cars on the road by 2020. Instead, the company spent years refining its Full Self-Driving (FSD) software and shifting its hardware strategy, meaning that the commercial robotaxi launch never materialised, until now.

Rollout in Austin, Texas

Musk now says that Tesla’s planned launch in Austin will involve a small fleet of around 10 to 20 Model Y SUVs operating within a geofenced zone of the city. These vehicles will use what Musk has called “FSD Unsupervised”, meaning they are intended to operate without a human driver behind the wheel. Musk stated in a post on X: “Tentatively, June 22. We are being super paranoid about safety, so the date could shift.”

Spotted

The announcement came just days after testing vehicles were spotted in southeast Austin with the word “Robotaxi” printed on them. In a separate post, Musk also claimed that from 28 June, “the first Tesla that drives itself from factory end of line all the way to a customer house” will take place, something he has described as a major milestone in autonomous production.

What Exactly Is a Robotaxi?

A robotaxi is a fully autonomous vehicle that provides taxi services without a human driver. The idea is that a customer can summon a vehicle via an app, ride to their destination, and exit, all without interacting with a human operator. Tesla’s version of the service will begin in a limited area, with remote monitoring for safety.

Following Waymo and Cruise

It should be noted that Tesla is not the first company to the market with a robotaxi service. For example, Tesla’s approach resembles that of competitors like Waymo and Cruise, who also began robotaxi rollouts in restricted zones under strict conditions. Waymo, for example, already operates commercially in Phoenix and parts of San Francisco and Los Angeles. Cruise, backed by General Motors, had a promising start but suspended operations in late 2023 following a pedestrian injury incident that drew regulatory scrutiny.

Why It Took So Long

The idea of self-driving cars has been around for over a decade, but mass-market deployment has proven far more difficult than early estimates suggested. In Tesla’s case, the core challenge has been both technical and regulatory.

For example, Tesla’s FSD system has been under investigation by the US National Highway Traffic Safety Administration (NHTSA) following multiple incidents involving crashes, some reportedly due to the software’s failures in low-visibility conditions. In one case, a pedestrian was killed.

While Tesla has previously claimed that all its cars since 2016 had the necessary hardware for autonomy, Musk admitted earlier this year that many vehicles will require upgrades to run the current FSD software. The company has now moved to a vision-only system, removing radar and LiDAR, a decision that has been widely criticised by autonomous vehicle experts.

Data Troubles Too

There is also the matter of data. Unlike Waymo, which maps its operating areas in detail using high-definition 3D maps, Tesla has tried to rely on neural networks trained on massive volumes of driving footage. This has made scaling difficult and introduced variability that regulators have found hard to approve.

Musk’s Image and Its Impact on Tesla

Elon Musk’s personal brand has become increasingly polarising in recent years. His public alignment with cryptocurrency memes, his vocal support for Dogecoin, and a turbulent relationship with Donald Trump have drawn both criticism and ridicule. While once celebrated for visionary innovation, Musk has also faced backlash over controversial posts, involvement with DOGE, erratic business decisions, and mass layoffs at several of his companies.

More recently, Musk’s role in advising Trump (followed by a very public fallout) has alienated large segments of Tesla’s consumer base, particularly in Europe. Tesla’s EV sales have shown signs of slowing, with increased competition from Chinese automakers and established rivals in Europe and the US. This has placed added pressure on the robotaxi rollout to deliver fresh growth.

Why Austin?

It seems that Austin is a strategic choice for a rollout for several key reasons. Texas has relatively permissive regulations around autonomous vehicle testing and deployment, especially compared to states like California. Also, Tesla already has a significant presence in Austin through its Gigafactory, and the area offers a variety of suburban and semi-urban driving conditions ideal for early robotaxi trials.

Start in the “Safest” Areas

The service will begin only in the “safest” areas of Austin, Musk has said. Vehicles have been repeatedly seen mapping and testing routes in the same neighbourhoods in southeast Austin. This narrow initial footprint allows Tesla to mitigate risk while gathering user data and refining its service.

What’s at Stake for Tesla and the Industry

At this point for Tesla and Musk, the financial stakes are high. Tesla has pivoted sharply away from its earlier strategy of producing affordable EVs for the mass market. Instead, it now appears to see autonomy, and robotaxis specifically, as its key to future growth. If successful, the robotaxi service could create a powerful new revenue stream with high margins and recurring user engagement.

For Tesla, therefore, this launch is not just a new product but is a test of its ability to deliver on technological promises that have been years in the making. It is also a reputational gamble. Any high-profile failure could undermine consumer confidence and invite further regulatory scrutiny, and further criticism or damage to the Musk brand.

For the wider industry, Tesla’s move is likely to intensify competition. Waymo, Zoox (Amazon-owned), and Apple’s long-rumoured autonomous vehicle programme will all be watching closely. A working Tesla robotaxi in a live environment could reignite investor interest in autonomy after a period of cooling.

Urban Mobility

If Tesla can prove its model works safely and reliably, the implications for urban mobility may be significant. Businesses could use robotaxis for employee transport, client travel, or local delivery in a cost-effective, on-demand way. Fleet management costs could drop, while ride availability and convenience could increase.

For example, local firms in Austin that rely on staff movement between offices or sites may benefit from more predictable, automated transport. It could also open new possibilities for tourism, hospitality, and customer service sectors where flexible, affordable point-to-point mobility can add real value.

However, some business leaders remain cautious. Liability in the event of an accident, limited coverage areas, and regulatory grey zones still pose challenges. Insurance, data privacy, and workplace policy updates would also need to evolve to support robotaxi use at scale.

Early Enthusiasm Meets Persistent Criticism

Despite the enthusiasm, experts remain wary. Tesla’s refusal to use LiDAR, i.e. a tool nearly all other AV companies rely on for precise spatial mapping, has been called “reckless” by some in the field. Public demonstrations have also drawn criticism. For example, in 2024, a group of safety advocates staged a protest using child-sized mannequins in San Francisco to show that Tesla’s FSD software failed to stop in simulated pedestrian scenarios.

Also, regulators are bound to be watching closely. The NHTSA’s ongoing investigations may yet influence the pace and scope of Tesla’s rollout, and cities with stricter AV policies may not welcome Tesla’s robotaxis without additional testing and third-party validation.

How Others Have Fared in This Space

As noted earlier, Tesla is not the first company to offer driverless ride services. Waymo has been operating in Phoenix since 2020 and has expanded gradually to parts of San Francisco and Los Angeles. Its vehicles use LiDAR, detailed mapping, and a cautious rollout process that has largely avoided major safety incidents.

Cruise, another major player, ran services in multiple US cities but paused all operations after an accident in late 2023 triggered widespread scrutiny and a loss of confidence in its safety protocols. Zoox, owned by Amazon, has been slower to launch but continues to test its purpose-built autonomous shuttles in California and Nevada.

Tesla’s approach is arguably more ambitious, but also riskier. Its reliance on general-purpose AI rather than detailed pre-mapping sets it apart, for better or worse. Whether that gamble pays off now rests, in large part, on the roads of Austin.

China’s Robotaxis Are Already Operating at Scale

While the US and Musk have drawn much of the global attention around autonomous vehicles, it’s worth noting here that China has quietly moved ahead with large-scale robotaxi deployments in several major cities. Companies like Baidu, Pony.ai and AutoX have all launched commercial driverless ride services in selected urban areas, in some cases without any human safety drivers onboard.

For example, Baidu’s Apollo Go service currently operates in cities including Beijing, Wuhan, Chongqing and Shenzhen. In certain districts of these cities, passengers can hail a fully driverless robotaxi using a mobile app, with the vehicle arriving and completing the journey without any human intervention. Baidu has already reported over 3 million autonomous rides completed and says that, in Wuhan, it now runs more than 100 driverless cars each day.

Pony.ai, backed by Toyota, is also operating robotaxi trials in Beijing and Guangzhou and has obtained permits for driverless testing in key urban zones. Meanwhile, AutoX, which is backed by Alibaba, claims to be the first company in China to run a completely driverless fleet in Shenzhen. Its vehicles operate on open roads with no onboard safety driver and no remote monitoring, under the approval of local authorities.

Why Is It Working In China?

China’s progress has been driven in part by a supportive regulatory environment. For example, several cities have introduced staged permission systems for autonomous vehicles, often designating specific districts for testing and public use. These areas are typically well-mapped, controlled and connected, which helps reduce the complexity and risk of operating without a driver.

Unlike Tesla’s reliance on vision-based AI alone, Chinese robotaxi providers typically use a combination of LiDAR, radar, high-definition mapping and vehicle-to-infrastructure data. This hybrid approach has allowed them to demonstrate higher consistency and, so far, avoid high-profile safety failures.

The result is that robotaxis in China are no longer just test cases but have become part of everyday urban mobility for some residents. While the scale remains relatively localised, the maturity of these deployments provides a valuable benchmark for global players, including Tesla.

What Does This Mean For Your Business?

Whether Tesla’s robotaxi launch becomes a turning point for the company or another overhyped milestone will depend heavily on how it performs in the real world. Unlike earlier promises tied to theoretical capabilities, this rollout involves real passengers, real roads, and real expectations. A smooth and safe service could help re-establish confidence in Tesla’s long-term vision and give the company fresh momentum at a time when its EV market share is under pressure and its public image is increasingly tied to the unpredictability of Musk himself.

For regulators, competitors, and the wider public, this trial will serve as a test case for what a driverless future might actually look like. If Tesla’s system operates reliably within its geofenced limits, it could pressure US cities and lawmakers to accelerate AV frameworks and could encourage other providers to speed up their deployments. However, any serious incidents could lead to renewed regulatory clampdowns or stall the broader industry’s progress.

UK businesses, while not directly impacted by the Austin launch, should be watching carefully. If Tesla proves its robotaxi model can be safe, efficient, and scalable, pressure may build for the UK to define clearer policies on AV services. Sectors like logistics, corporate travel, hospitality, and facilities management could all benefit from more flexible, low-emission transport solutions, especially in urban areas facing congestion and net zero targets. It may also prompt innovation across Europe’s mobility sector, where trust, data security, and transparency will be essential.

For now, Tesla’s plan to move from test footage to public fares is quite a bold move. The company has much to prove, both in terms of technology and trust. Whether the robotaxi rollout marks the beginning of a new chapter or another delay in an already chequered timeline remains to be seen.

Company Check – Tesla Profits Crash 71% Amid Growing Backlash

Posted on by Paul Stradling

Tesla’s profits have plummeted by 71 per cent in the first quarter of 2025, a collapse driven by weakening vehicle sales, political controversy and rising competition, thereby marking one of the toughest periods the electric vehicle pioneer has faced in years.

Tesla’s Financial Strength Shaken

Elon Musk’s Tesla posted $409 million in net income on $19.3 billion in revenue, falling well short of analyst expectations and underlining growing pressures on the company’s business model. Tesla’s car sales revenue plunged by 20 per cent compared to a year ago, reflecting not only a softening market but a series of self-inflicted wounds.

Only Just Kept Out of the Red

In fact, the company’s results show that Tesla was only kept out of the red by selling $595 million worth of zero-emissions credits. Without these, Tesla would have recorded a loss – a stark shift for a business once seen as the powerhouse of the EV industry.

Second Consecutive Quarter Decline

It’s now the second consecutive quarter of dramatic year-on-year declines, with Tesla also warning that ongoing political uncertainty and evolving trade policies could make recovery even harder in 2025.

Musk’s Brand Damaged

Much of the recent backlash against Tesla has centred on CEO Elon Musk himself. His high-profile involvement in the Trump administration’s Department of Government Efficiency (DOGE) programme has sparked protests, vandalism of Tesla dealerships, and a surge in negative sentiment towards the brand.

Public opinion polls show Musk’s favourability ratings have dropped sharply since taking on his controversial White House role. Although Musk confirmed he will now be reducing his government involvement, pledging to spend more time at Tesla from May onwards, some damage to the company’s reputation already appears to be baked in.

Not surprisingly, shareholders have grown increasingly concerned, with some suggesting that Tesla’s recent slide can be traced directly to Musk’s divided focus and political entanglements. For example, Tesla stock is now down around 50 per cent from its peak in December 2024.

Tariffs and Trade Wars Add More Pressure

It seems that Tesla now also faces external challenges, fuelled by Musk’s friend and associate President Trump’s trade war policies, including new tariffs, which are putting strain on the company’s supply chains and cost base. While Musk has publicly advocated for lower tariffs, Tesla remains exposed due to its reliance on imported parts, despite its US-based manufacturing footprint.

The company’s latest earnings statement highlighted that “rapidly evolving trade policy” and “changing political sentiment” are likely to affect demand for Tesla products in the near term, particularly outside the US where sentiment towards Musk’s political stance may carry additional weight.

Product Delays and Competitive Threats

Meanwhile, rivals have taken full advantage of Tesla’s slowdown. For example, Chinese manufacturer BYD, in particular, has surged ahead globally, offering new models at lower price points and packing in increasingly sophisticated technology. BYD recently overtook Tesla as the world’s top EV seller by volume, a major psychological and market shift that could have long-term effects on Tesla’s standing.

In Europe, brands like BMW, Volkswagen, and Hyundai are also eating into Tesla’s market share, while in the UK, MG (backed by Chinese automaker SAIC) has grown rapidly to become one of the best-selling EV brands. MG’s affordable models like the MG4 have resonated strongly with British buyers looking for value and reliability, placing direct pressure on Tesla’s more expensive offerings.

Tesla’s situation has also been made worse by a major recall of nearly 4,000 Cybertrucks due to a faulty accelerator pedal, just months after the vehicle’s launch. The recall has further dented confidence in Tesla’s ability to deliver new models without critical flaws, at a time when competition is growing fiercer by the day.

As a result, Tesla’s dominance in the UK EV market has slipped, with recent figures showing it falling behind local favourites and newer Asian entrants in key sales rankings. This trend has been further accelerated by consumer concerns over Musk’s politics, which some analysts believe has made the brand less appealing to mainstream buyers in the UK and Europe.

More Affordable Model On The Way

Musk has promised that production of a new, more affordable Tesla model will begin in June 2025, using a modified version of the existing manufacturing platform rather than a full next-generation overhaul. However, scepticism remains, especially after Reuters reported potential delays to these plans earlier this month.

Without a compelling, lower-cost alternative soon, it looks as though Tesla risks losing even more ground to rivals that are moving faster and offering sharper value.

Uncertain Future For Robotaxis and AI Projects

Musk’s bold claims around Tesla’s Robotaxi and Optimus robot programmes have also drawn some scrutiny. Musk stated that an initial Robotaxi service will launch in Austin, Texas, this June, with broader rollouts later in the year, and he predicted that Tesla vehicles would be capable of fully autonomous driving by the end of 2025.

However, Tesla has repeatedly missed self-driving targets in the past, and internal analysis reportedly suggests that Robotaxi services would lose money for an extended period even if technically successful. Investors remain wary of promises that may be years away from full commercial viability.

What Does This Mean For Your Business?

For those operating in sectors linked to clean energy, automotive technology, or international trade, Tesla’s latest struggles could create real ripple effects. If Tesla stumbles further, it risks not only damaging its own future but also unsettling wider supply chains, investment patterns, and consumer expectations, including here in the UK, where Tesla has been a visible flagbearer for EV adoption.

There is still a chance that Musk’s decision to scale back his government commitments and refocus on Tesla’s core business could help stabilise the situation. The company’s push to launch more affordable models (if delivered successfully) may also help to re-energise its position in increasingly crowded global markets. However, with Tesla’s brand reputation, operational execution, and international supply resilience now all under intense pressure, many businesses and stakeholders will be watching the next six months very closely.

It also cannot be ignored that many critics see Elon Musk himself as a key factor behind Tesla’s current predicament. His divisive political involvement, coupled with persistent overpromises on self-driving technology and other initiatives, have arguably fuelled much of the backlash the company is now facing. In today’s volatile market, even the strongest tech brands are not immune to political risks, operational missteps, or shifting public sentiment.

Whether this is merely a temporary stumble or the start of a deeper turning point remains to be seen. What is clear, though, is that the road ahead for Tesla, and for businesses that depend on its ecosystem, looks far bumpier than anyone might have predicted just a year ago.

Tech Insight : What was Revealed By The “We, Robot” Event?

Posted on by Paul Stradling

Following Tesla’s “We, Robot” event on October 10 at the Warner Bros. Studios in Los Angeles, we look at the big reveals, the reactions to them, plus some of the key comments made and opinions given.

A Showcase of Futuristic Visions 

Tesla’s long-anticipated “We, Robot” event, which captured the attention of millions worldwide, was CEO Elon Musk’s bold declaration of the company’s future direction, positioning Tesla not just as an electric vehicle manufacturer but as a cutting-edge robotics and artificial intelligence company. The showcase was reported to be rich with futuristic visions, but it left many wondering whether these concepts were truly within reach or just another example of Musk’s futuristic ambitions.

The Cybercab – A Robotaxi with No Steering Wheel 

The centrepiece of the evening was the long-awaited Tesla robotaxi, referred to as the “Cybercab”. A striking vehicle with gull-wing doors, the Cybercab was revealed as a completely autonomous car, lacking both a steering wheel and pedals. It operates solely on Tesla’s proprietary Full Self-Driving (FSD) technology, a vision-based system that relies on cameras rather than hardware such as lidar, which is commonly used by competitors like Waymo.

Musk announced that the Cybercab would be priced under $30,000 and would enter production in 2026, albeit without committing to a specific timeline for large-scale manufacturing. “The autonomous future is here,” Musk proclaimed to the audience, describing how these vehicles could be up to ten times safer than human-driven cars. He added that they could operate at a cost of only 20 cents per mile. Charging, he said, would be made even more convenient through inductive charging, which eliminates the need for physical charging plugs.

And …The Robovan, Tesla’s Autonomous Multi-Passenger Vehicle 

While the Cybercab was undoubtedly the star of the show, Musk also introduced a surprise in the form of Tesla’s ‘robovan’. Designed to carry up to 20 passengers, the robovan offers a vision for high-volume, autonomous transport. However, details about the robovan’s production timeline, features, and expected costs were reported to be notably sparse. Musk briefly mentioned that its operational costs could be as low as 5 cents per mile, making it potentially one of the cheapest transport solutions in the market.

Regulatory Hurdles Ahead 

Although the robovan could potentially revolutionise shared transport, industry analysts have been quick to point out the significant regulatory and technical hurdles that stand in the way. For example, Matthew Wansley, a professor of law at New York’s Cardozo School, commented, “What Tesla showed tonight was a lot of sci-fi smoke and mirrors… Musk has yet to prove that a vision-only approach for automation is viable.”

Tesla’s ‘Optimus’ Humanoid Robot 

As the event’s name suggests, “We, Robot” was not just about autonomous vehicles. Musk used the opportunity to highlight Tesla’s progress with ‘Optimus’, the company’s humanoid robot. Priced between $20,000 and $30,000, the robot is designed to handle many everyday tasks, offering a glimpse into how AI and robotics could reshape labour markets. Musk did not delve deeply into specific capabilities but promised that Tesla has made “a lot of progress” on the Optimus robot.

The unveiling of Optimus sparked a mixture of excitement and scepticism. For some, it reinforced Musk’s long-standing ambition to push AI and robotics into mainstream use. However, others expressed doubt about how quickly such a product could be scaled for consumer use, with some comparing it to past announcements from Tesla that have seen significant delays or failed to materialise.

Key Reactions and Investor Sentiment 

Despite the technological marvels on display, the event appears to have left some investors and experts feeling underwhelmed. One of the recurring criticisms seems to be the lack of concrete timelines and plans for the production and deployment of Tesla’s autonomous fleet. For example, Dennis Dick, reportedly an equity trader, has been quoted as summarising the sentiment of many investors, saying: “I’m a shareholder and pretty disappointed. I think the market wanted more definitive timelines. I don’t think he said much about anything.” 

Similarly, Bryant Walker Smith, a professor at the University of South Carolina, noted, “Tesla yet again claimed it is a year or two away from actual automated driving – just as the company has been claiming for a decade.” This remark highlights Tesla’s history of perhaps over-promising and under-delivering when it comes to autonomous driving capabilities.

Optimism 

Musk himself acknowledged that he often errs on the side of optimism when it comes to timelines. Yet, he maintained that Tesla’s approach, which eschews lidar in favour of a camera-based system, will ultimately be the most efficient and scalable. This approach, however, remains a point of contention among experts, with many pointing out that other companies in the autonomous vehicle race, such as Waymo and General Motors’ Cruise, have invested heavily in lidar technology, which they consider crucial for ensuring the safety and reliability of driverless cars.

Hurdles and Opportunities 

The robotaxi market, while potentially lucrative, appears to be fraught with obstacles with the establishment of a fully functional and safe fleet of autonomous vehicles looking like being no small feat. For example, Tesla’s reliance on vision-based AI, while cost-effective, faces significant challenges in terms of regulatory approval and the technology’s ability to handle complex driving environments, such as adverse weather or unpredictable pedestrian behaviour.

Despite these hurdles, Tesla’s massive fleet of electric vehicles, which already collect a wealth of driving data, gives the company a significant data advantage over rivals. KC Boyce, a vice president at data analytics firm Escalent, has been reported as commenting, “The vision-only system Tesla has chosen handicaps their capabilities versus how Waymo and Cruise have chosen to approach autonomy… Whether that data advantage is enough to close the sensor gap, I’m sceptical.” 

A Vision of the Future, But With Some Questions 

While the “We, Robot” event provided a tantalising glimpse into the future of transportation, it also raised many questions. On one hand, the promise of a $30,000 fully autonomous vehicle is certainly appealing, as is the prospect of making transportation safer, cheaper, and more efficient. Musk’s vision of a world where cars operate without human intervention could significantly alter how people live and work, offering the prospect of reclaiming valuable time spent commuting.

However, as history has shown, the road to full autonomy is long and fraught with both technical and regulatory challenges. Tesla’s vision of the future, while bold, still hinges on technological breakthroughs that have yet to be realised and on overcoming resistance from both regulators and the public.

In many ways, the “We, Robot” event could be considered to be a microcosm of Tesla’s broader strategy and a bold vision with world-changing potential, tempered by the practical realities of bringing that vision to life.

Whether the Cybercab and robovan become cornerstones of future transport or remain conceptual dreams is a question only time can answer.

Amazing Space X Rocket Return and Grab By “Chopsticks” 

While the “We, Robot” event may have left some attendees and investors underwhelmed due to its lack of concrete timelines and detailed plans, it is impossible to overlook the historic achievement made just days later by Musk’s other venture, SpaceX. On October 13, SpaceX successfully launched its fifth Starship test flight, but what truly captivated the world was the unprecedented mid-air capture of the “Super Heavy” booster rocket.

This was the first time SpaceX had managed to catch the 230-foot-tall booster using mechanical arms, nicknamed “chopsticks”, as it returned to the launch pad in Boca Chica, Texas. This groundbreaking recovery method is a crucial step towards making the Starship fully reusable, a key aspect of Musk’s vision for cost-effective and rapid space travel. As Musk himself stated, the achievement marked a “big step towards making life multiplanetary,” moving closer to SpaceX’s goal of using the Starship for moon and Mars missions in the near future.

This feat of engineering comes at a pivotal moment for SpaceX, particularly as NASA has selected the Starship for its upcoming crewed lunar missions under the Artemis programme. While Tesla’s robotaxi aspirations continue to face regulatory and technical hurdles, the extraordinary success of SpaceX in recovering the booster not only demonstrates Musk’s continued innovation but also underscores the broader vision he has for advancing humanity’s future beyond Earth.

What Does This Mean For Your Business? 

The “We, Robot” event undoubtedly provided a bold look at the future of transportation, particularly in terms of Tesla’s ambition to reshape how we think about mobility. For example, the unveiling of a $30,000 fully autonomous vehicle promises to disrupt the transport industry by making travel more accessible, safer, and more efficient. If realised, this could mark a pivotal moment in the shift towards self-driving technologies, potentially transforming how people and goods move across cities and countries. However, the event left some critical questions unanswered. Technological breakthroughs are still needed, and regulatory obstacles remain high. Tesla’s competitors, who are also racing to develop autonomous vehicles, will be watching closely. Companies such as Waymo and General Motors’ Cruise may accelerate their own efforts, sparking fierce competition in this rapidly evolving space.

For businesses and industries reliant on transportation, the potential impact of widespread autonomous driving is vast. Companies that depend on logistics, for example, could benefit from lower costs and improved efficiency, while new opportunities for services linked to mobility could emerge. However, this transition might also bring challenges, particularly for sectors like insurance and vehicle manufacturing, which may have to adapt quickly to changing demand and the reduction in human-driven vehicles.

In a broader economic sense, should Tesla succeed in making autonomous vehicles affordable, the ripple effect could extend to urban planning, employment in the transport sector, and even global supply chains. Entire industries may need to rethink their strategies in response to what could be a revolution in how transportation is managed and delivered. The knock-on effects on global economies, particularly in regions dependent on automotive industries, could be profound.

Meanwhile, the success of SpaceX in catching the Super Heavy booster rocket marked a monumental moment for Musk’s broader ambitions. While Tesla wrestles with challenges here on Earth, the achievement in space highlighted the potential for transformative change beyond our planet. This technological leap not only moves SpaceX closer to making the Starship fully reusable but also strengthens Musk’s vision of enabling human life on other planets. The success of SpaceX serves as a powerful reminder of Musk’s ability to push the boundaries of innovation across multiple industries, potentially outpacing competitors who are yet to make comparable breakthroughs.

Both Tesla’s ambitious autonomous vehicle plans, and SpaceX’s unprecedented achievements reveal a future of rapid change, not just for transportation on Earth, but potentially for space travel as well. For Tesla, its competitors, and the wider transport industry, the next few years will be crucial in determining whether this vision becomes a reality or remains a distant dream. As for SpaceX, its success signals that the future Musk envisions is not just a concept but an impending reality.

Featured Article : Is Automated Driving Safe Yet?

Posted on by Paul Stradling

In light of two recent reports of motorcyclists being killed in collisions with Tesla vehicles in Autopilot mode, we look closely at the issue of whether automated driving is really safe.

Death of Two Motorcyclists 

If automated driving is a factor in death on the roads, it seems legitimate to ask the question ‘is automated driving safe?’, especially since it’s a very new technology. In fact, there have been some widely publicised reports of deaths linked to vehicles operating on Autopilot mode in the US in recent times. For example:

– In 2022, a 34-year-old motorcyclist was killed in Utah when his Harley Davidson was hit by a Tesla Model 3 on Autopilot, reportedly driving at 75-80 miles per hour. The parents of the victim have reportedly now sued Tesla and the vehicle’s driver, claiming that the driver assistant software and other safety features are “defective and inadequate.”

– In April last year, a 28-year-old motorcyclist from Stanwood, Washington, was struck by a 2022 Tesla Model S. It’s been reported that the driver of the Tesla told first responders that he had been looking at his phone while the car was driving itself (in Full Self-Driving mode – FSD), when the car suddenly lurched forward, hitting the motorcycle. Washington State doesn’t actually permit self-driving vehicles to operate on the roads, unless they have a testing arrangement with the Department of Licensing.

Other Instances 

There have been other serious recent accidents involving vehicles driving on Autopilot mode, including this month (August 2024), in the US, when a driver of a Tesla was killed when the vehicle failed to navigate a highway ramp while on Autopilot, leading to a collision.

In fact, it’s been reported that The National Highway Traffic Safety Administration (NHTSA) in the US has identified 13 fatal crashes related to Tesla’s Autopilot.

Not Just Tesla’s With Driver Assistance System 

Although Tesla vehicles were reportedly involved in several incidents, and Teslas have a feature known as ‘Autopilot’ (which includes Traffic-Aware Cruise Control and Autosteer), and a ‘Full Self-Driving (FSD) Package’, it is not the only brand of vehicle with advanced driver-assistance systems.

Other examples include :

– Ford Mustang Mach-E, and F-150 Lightning have ‘BlueCruise’ which offers hands-free driving on pre-mapped highways, adaptive cruise control, lane-keeping, and speed sign recognition.

– General Motors (GM) Chevrolet Bolt EV, Cadillac LYRIQ, and the GMC Hummer EV have ‘Super Cruise’ which offers hands-free driving on compatible highways, lane change on demand, and automatic lane-centering.

– BMW iX and i4 models have ‘Driving Assistance Professional’ which offers adaptive cruise control, lane-keeping assist, and Traffic Jam Assist.

– Mercedes-Benz EQS and EQE models feature ‘Drive Pilot’, a (Level 3) autonomous driving system in specific conditions, primarily on highways.

– Audi e-tron and Q4 e-tron models feature Traffic Jam Pilot (available in limited markets), (Level 3) autonomous driving in traffic jams on certain roads.

– Other makes/models that have similar automatic driving assistance features include Nissan (Ariya), Hyundai/Kia (Hyundai Ioniq 5 and Kia EV6), Lucid Motors (Lucid Air), and Rivian (R1T and R1S).

No Vehicle On The Market Is Fully Self Driving 

Despite many makes/models offering advanced driver-assistance systems, with some claiming to have full autopilot or full self-driving capabilities, it’s essential to note that no vehicle on the market is truly “full self-driving” as defined by the highest levels of autonomous driving (Level 4 or 5). This is where no human intervention is required. Most systems are classified as Level 2 or Level 3, which still require driver supervision.

Levels 

To briefly summarise what each driver assistance level actually means:

– Level 0 means no automation, i.e. the human driver is entirely responsible for controlling the vehicle.

– Level 1 (Driver Assistance) is where the vehicle can assist with either steering or acceleration/deceleration using information about the driving environment, but not both simultaneously – e.g. cruise control.

– Level 2 (Partial Automation) means the vehicle can control both steering and acceleration/deceleration, but the human driver must monitor the driving environment and be ready to take control at any time. One important and relevant example of this is Tesla’s Autopilot.

– Level 3 (Conditional Automation) refers to the vehicle being able to handle all aspects of driving in certain conditions but the human driver must be ready to intervene when requested, e.g. Audi’s Traffic Jam Pilot.

– Level 4 (High Automation) means the vehicle can perform all driving tasks in specific conditions without human intervention. Human driver control is only needed outside these conditions.

– Level 5 (Full Automation), which no vehicle on the market currently has, means the vehicle can handle all driving tasks under all conditions, without any human intervention.

Tesla’s Autopilot & FSD 

As stated above, Tesla’s Autopilot, which was reportedly being used by some drivers involved in fatal collisions, is only level 2 automation, i.e. partial automation where the driver must monitor what’s happening and be ready to take control.

The so-called Full Self-Driving (FSD) Package from Tesla includes advanced features like Navigate on Autopilot, Auto Lane Change, Autopark, Summon, and Traffic Light and Stop Sign Control. It is an upgrade over the standard Autopilot, which includes basic adaptive cruise control and lane-keeping. However, despite its name, FSD is NOT fully autonomous and still requires driver-supervision. In fact, it is considered Level 2 automation, where the system can control both steering and acceleration/deceleration, but the driver must remain attentive and ready to take control.

Tesla says that its Autopilot mode is “intended to be used only with a fully attentive driver. It does not turn a Tesla into a self-driving vehicle, nor does it make a vehicle autonomous”. Tesla also states that “before enabling Autopilot”, you must agree to “keep your hands on the steering wheel at all times” and to always “maintain control and responsibility for your vehicle.”

Driver Error? 

With Tesla’s Autopilot and FSD clearly not making a vehicle fully autonomous, despite the ‘brand names’ of the features containing words that some may assume could suggest more autonomy, many of the reports of accidents do appear to show drivers doing other things and perhaps not being attentive at the wheel. For example, in the case of Jeff Nissen’s death (the 28-year-old motorcyclist of Stanwood, Washington, reportedly hit by a Tesla on Autopilot), it was reported that by the driver’s own admission, his attention was elsewhere (checking his phone). Also, in a crash in March 2018 involving Apple engineer Walter Huang, who was driving his Tesla Model X on Autopilot, it was reported that the driver was playing a video game on his phone at the time, i.e. a lack of driver attention may have affected the severity of the crash.

It was also reported in March that six weeks before the first fatal U.S. accident involving Tesla’s Autopilot in 2016, Tesla’s president Jon McNeill tried a Model X and emailed feedback to automated-driving chief Sterling Anderson (cc’ing Elon Musk) saying (March 25, 2016): “I got so comfortable under Autopilot, that I ended up blowing by exits because I was immersed in emails or calls (I know, I know, not a recommended use)”.  

It should also be noted that Tesla vehicles today use a combination of visual and audible alerts to prompt the driver to pay attention to the road. In fact, recent updates have also incorporated driver monitoring through the cabin-facing camera to detect if the driver is looking away from the road for too long.

Systems At Fault? 

Some people blame the vehicle manufacturers for perhaps leading drivers to be overconfident in the driver assistance systems and others have suggested that the systems themselves may not work as they should. For example, in the case of the motorcyclist killed in a 2022 crash involving a Tesla Model 3 on Autopilot in Utah, the motorcyclist’s parents have sued Tesla (and the vehicle’s driver), claiming that the driver assistant software and other safety features are “defective and inadequate”. 

Why? 

A recent Wall Street Journal article investigated “The Hidden Autopilot Data That Reveals Why Teslas Crash” which looked at alleged safety concerns with Tesla’s Autopilot. It highlighted issues with Tesla’s camera-based system, showing that it struggles in low visibility and obstacle detection. According to the article, an analysis of over 200 crashes revealed problems like sudden veering and failure to stop. Driver over-reliance on Autopilot and “phantom braking” were also highlighted as significant concerns. The investigation used data and video from crashes and emphasised a need for improved safety measures and transparency from Tesla.

Driverless Services

As mentioned, fully autonomous vehicles, are not yet (widely) available to the general public. However, there are some pilot programs and limited deployments are taking place in certain locations for driverless services. Here are some notable examples:

Waymo (a subsidiary of Alphabet Inc.) has been testing fully autonomous vehicles in several locations, including Phoenix, Arizona. They offer a limited public ride-hailing service called Waymo One, where some rides are conducted without a safety driver in the vehicle. They have encountered some issues recently, leading to increased scrutiny and regulatory actions. The National Highway Traffic Safety Administration (NHTSA) launched an investigation into Waymo following 22 incidents where its autonomous vehicles were involved in collisions or potentially violated traffic laws.

These incidents included crashes with objects such as gates and parked cars and instances where the vehicle’s automated driving system appeared to disregard traffic control devices. Despite these issues, the company has stated that it is proud of its safety record, having driven tens of millions of autonomous miles.

Waymo is cooperating with NHTSA to address these concerns​ although Waymo has also been subject to recalls. In June 2024, NHTSA obtained a voluntary update from Waymo to address a defect in its software that affected its ability to accurately detect and respond to poles near the driving path. This recall was part of the regulatory body’s approach to ensuring the safety of automated driving systems.

Cruise (backed by General Motors) operated autonomous vehicles in San Francisco although recently faced significant challenges, leading to a suspension of its driverless car operations nationwide. This decision came after a series of incidents involving Cruise vehicles, including a notable accident in San Francisco where a pedestrian was injured. The National Highway Traffic Safety Administration (NHTSA) launched a federal investigation into these incidents, prompting Cruise to pause operations to reassess and improve its safety protocols. The company announced that it is taking a proactive approach to rebuild public trust by examining its processes and ensuring safety is prioritised.

Apollo (part of Baidu) offers the ‘Apollo Go’ service in China (in cities like Beijing, Changsha, Cangzhou and Wuhan) providing fully autonomous rides in specific zones. Apollo has experienced some issues as it continues to expand its robotaxi services. For example in Wuhan, Baidu has deployed a large fleet of robotaxis and while these vehicles only make up a small portion of the city’s total taxis, they have been causing significant traffic problems.

The robotaxis are reported to drive too cautiously, leading to traffic jams and frustration among residents. Despite these issues, Baidu has made substantial progress in scaling its operations and has been expanding rapidly (it was the first to offer 24/7 service in China​) and has been aggressive in its rollout strategy, which includes heavily discounting rides to compete with traditional taxis. However, this approach has raised concerns about the long-term viability of its business model. Additionally, there have been incidents involving Apollo Go vehicles, such as minor accidents with pedestrians, which have stirred public debate and highlighted ongoing safety and integration challenges​​.

Overall, while Baidu’s Apollo program is advancing rapidly, it faces challenges related to traffic integration, safety, and economic sustainability as it works to improve its autonomous vehicle technology​.

Zoox (an Amazon subsidiary) has been testing its custom-built autonomous vehicles for public transport in specific areas. It has recently faced regulatory scrutiny and challenges in its operations. The NHTSA has opened an investigation into Zoox following incidents involving unexpected braking, which may pose rear-end crash risks. These incidents involved Zoox vehicles equipped with their automated driving system and occurred during daylight within the operational limits of the system. The investigation aimed to assess the performance of Zoox’s Automated Driving System, particularly concerning crosswalk behavior and rear-end collision scenarios​​. In response, Zoox has stated its commitment to transparency and collaboration with regulators to address these concerns.

Zoox has been expanding its vehicle testing in various locations, including California, Nevada, Austin, and Miami. Despite the investigation, the company continues to explore new markets and refine its technology​. However, as Zoox expands, it faces the ongoing challenge of integrating autonomous vehicles into urban environments.

Motional (a joint venture between Hyundai and Aptiv) is testing fully autonomous vehicles in Las Vegas and plans to offer a commercial service in partnership with Lyft. However, the company laid off about 40% of its workforce and announced plans to pause some of its robotaxi deployments, including those with Uber and Lyft, amid restructuring efforts​.

Despite these setbacks, Hyundai plans to invest nearly $1 billion to support Motional, aiming to keep the company viable as it works toward launching a robotaxi service using driverless Hyundai Ioniq 5 vehicles​​. Motional continues to test its vehicles in multiple cities, including Boston, Las Vegas, and Los Angeles​​.

These examples illustrate that while fully autonomous vehicles are being tested and deployed in certain controlled environments and fully-autonomous driverless services are available, completely autonomous vehicles (as such) are not yet widely available for everyday public purchase. Regulatory, technological, and safety challenges still need to be addressed before they can be purchased (mainstream) and adopted to run fully independently

What Does This Mean For Your Business? 

The debate on whether automated driving is safe has significant implications for various stakeholders. For manufacturers, the mounting incidents could suggest the necessity of rigorous testing and transparent communication about the capabilities and limitations of automated systems. While the technology promises enhanced safety and convenience (and supposedly greater safety on the roads), it may now be worth looking more closely at the apparent shortcomings identified in real-world applications, such as obstacle detection in low visibility and system reliability. This may not just involve refining the technology but also setting realistic expectations for consumers to prevent misuse and over-reliance.

For businesses relying on these technologies, such as logistics and ride-sharing companies, understanding that no current vehicle is fully autonomous (Level 4 or 5) is vital. The systems available (primarily Level 2 and some Level 3) require constant driver supervision. Educating drivers about their responsibilities and ensuring adherence to safety protocols could therefore mitigate risks. Anyone using these vehicles must always remain vigilant, keeping their hands on the wheel and their attention on the road at all times, as highlighted by the frequent accidents due to driver inattention.

In the UK, fully autonomous vehicles are not yet permitted on the roads without a special testing arrangement. The Automated Vehicles (AV) Bill, for example, aims to create a framework for the deployment and insurance of automated vehicles, which could influence future regulations and safety standards.

For the courts, the increasing number of incidents involving Tesla’s Autopilot is prompting deeper scrutiny. Legal cases are examining whether the marketing of these systems leads to driver overconfidence and misuse. The outcomes of these cases could set precedents affecting how manufacturers communicate the capabilities of their automated systems and the degree of responsibility they bear.

While automated driving systems have made significant advancements, claiming enhanced safety compared to human drivers, the technology is apparently not without flaws. The current systems require human supervision, and accidents often appear to involve a combination of factors such as driver attention, potential system faults, and road conditions. As such, while automated driving can offer safety benefits, it is not yet foolproof, and users must remain actively engaged.

Automated driving, therefore, presents both opportunities and challenges. The technology is advancing, but it demands responsible use, continued innovation, and comprehensive regulatory frameworks to ensure it truly enhances road safety. The growing body of evidence from incidents and legal actions suggests a cautious and informed approach is necessary to navigate the path towards fully autonomous driving.

Featured Article : Tesla Robotaxi In August

Posted on by Paul Stradling

Following a fall in Tesla EV sales and profits, Tesla boss Elon Musk has announced that he’ll be unveiling a ‘Robotaxi’ on August 8 this year.

May Swap Lower Cost EV For Robotaxi 

Reports initially indicated that Mr Musk’s Tesla company would be abandoning its plans to build a lower-cost EV (the Model 2) in favour of building the ‘robotaxi’ instead using the same small EV platform that was designed to power the lower-cost EV. However, Mr Musk took to his ‘X’ platform to quash that rumour.

What Is A ‘Robotaxi’? 

The robotaxi will be an autonomous ride-hailing service but it’s not yet clear if it will resemble a typical car or a vehicle without a steering wheel or pedals.

Promised Years Ago 

A Tesla car with autonomous capabilities was first promised back in 2016 as a way for Tesla owners to make an income from their cars as part of a ride-sharing network. At the time, the idea was that owners could add their car “to the Tesla shared fleet just by tapping a button on the Tesla phone app” enabling them to make money from the car while they’re “at work or on vacation” thereby “significantly offsetting and at times potentially exceeding the monthly loan or lease cost.” 

In 2017 and 2019 the ‘robotaxi’ idea – autonomous cars as part of a ride-sharing network – was floated again. Musk then said a couple of years later that a robotaxi with no steering wheel or pedals would enter the market by 2024.

Markets Pleased 

Mr Musk’s announcement that the robotaxi will be unveiled on August 8 initially pleased the markets with Tesla (TSLA) stock closing up nearly 5 per cent shortly after.

Automated Driving Features Anyway 

Teslas already have a driver-assistance system called ‘Autopilot’ as standard, anyway. However, for an extra $12,000, owners can buy a “full self-driving,” or FSD feature. However, this does not yet enable full autonomous driving capabilities but instead adds some automated driving features.

What Makes Tesla Uniquely Able To Introduce A Robotaxi? 

In addition to the original plan for owners to be able to add their car to the Tesla ride-sharing network, and the FSD feature, other factors that make Musk’s Tesla (perhaps uniquely) able to make a robotaxi include:

– Data Collection at scale. Tesla vehicles on the road today are equipped with a suite of sensors that collect vast amounts of data on real-world driving conditions (2.5 million miles of self-driving data from customers every day). Tesla uses this data to continuously improve its Autopilot and FSD algorithms through machine learning. This crowdsourced data collection model is unique to Tesla and is a critical component of its strategy to achieve full automation.

– Vertical integration. Tesla’s vertical integration strategy encompasses the manufacturing of its own batteries, software development, and vehicle production. This control over the entire supply chain and development process allows for rapid iteration and deployment of new technologies, which is essential for the development of an autonomous robotaxi.

– Energy efficiency and operational cost. Tesla’s electric vehicles are known for their energy efficiency, which can significantly reduce the operational cost of running a robotaxi service. Lower costs could make Tesla’s robotaxi service more competitive against traditional ride-sharing services and personal car ownership.

– Innovative battery technology. Tesla’s continuous innovation in battery technology, aiming for higher energy density, longer lifespan, and lower costs, will be critical for the economic viability and sustainability of a robotaxi fleet.

– Telsla’s brand image and consumer trust. Tesla’s brand is strongly associated with innovation in electric vehicles and autonomy. This existing consumer trust and interest could, therefore, encourage quicker adoption of its robotaxi service.

What About Regulation?

Although Tesla has experience in navigating the regulatory landscape for electric vehicles and autonomous vehicles, one of the significant challenges of getting an autonomous robotaxi service on the road is likely to be whether Tesla can successfully navigate the regulatory hurdles.

Another challenge that Tesla may be faced with to get robotaxi on the road could be of a technical nature, i.e. having to add more enhanced sensors, cameras, and other equipment to enable it to achieve full autonomy.

Hype Vs Reality? 

Other more sceptical commentators have seen Musk’s announcement as perhaps just a tactic to boost share prices and keep investors focused on the future of his company by dangling a new product (and one that’s been dangled before a few times). It’s also been suggested (e.g. by Adam Crisafulli of Vital Knowledge) that it’s a case of Tesla perhaps trying to distract from the poor current EV market conditions, and that the hype may not live up to the reality.

What Does This Mean For Your Business? 

With the EV market going through a bit of a slump and with Tesla stock prices having struggled recently, the more sceptical among us could be forgiven as seeing this announcement as ‘classic Musk’, i.e. floating a new product to give things a boost.

The idea and the original vision for the robotaxi fleet dates back to 2016 but it may now be the case (although Musk denies it) that he’s going to prioritise the robotaxi over the lower-cost EV (Model 2) car.

If successful and all regulatory and technical challenges are overcome, the introduction of a robotaxi could have a number of industrywide ripple-effects. In fact, it could shake up several industries, compelling traditional automakers to fast-track autonomous and electric vehicle technologies. Ride-hailing services could see a direct threat to their business models, as robotaxis promise lower costs and potentially cheaper fares for consumers.

This new service could also impact public transportation usage, influence insurance industry standards due to changing risk profiles, and necessitate new regulatory frameworks. Urban planning may also need to evolve to accommodate autonomous vehicles, and while there could be job displacements in driving professions, new opportunities in tech and fleet management may arise.

Also, with robotaxis being electric, they could contribute to reducing transportation’s environmental footprint, aligning with sustainability goals. These ripple effects, therefore, would span across multiple sectors, prompting widespread innovation and adaptation. All that said, we’ve now got to wait a few months to see if (and how) Musk delivers on his promise.