Can robotaxis turn a profit? Experts skeptical as Tesla prepares to unveil plans.

Published On Oct 5, 2024, 8:30 AM

Tesla's CEO Elon Musk is set to unveil plans for an autonomous taxi fleet, which he claims could significantly increase the company's value. While the market for autonomous taxis could generate substantial revenue by 2030, experts point out several hurdles in achieving profitability. These include high operational costs associated with owning a complete fleet, insurance, and maintenance—all of which are projected to create a cost structure that is two to three times higher than traditional car ownership. Moreover, existing competitors like Waymo are already facing substantial losses. Tesla's ability to implement autonomous technology successfully remains unproven, leading to skepticism about its potential profitability in the near term.