Tesla’s Robotaxi Rollout Faces Delays
Tesla (NASDAQ: TSLA) is encountering challenges in its anticipated rollout of autonomous robotaxi services. CEO Elon Musk previously projected that the service would be operational for half the U.S. population by the end of 2023, but has since revised expectations, stating that operations may only begin in 8 to 10 metro areas, including Nevada, Florida, and Arizona. Currently, limited operations are in effect in Austin, Texas, and the San Francisco Bay Area.
Musk announced plans for mass production of the dedicated robotaxi, Cybercab, to begin in April 2024, with early production rates being described as “agonizingly slow.” Investors are concerned about regulatory approvals matching production timelines, which may result in stagnant cash flow as production ramps up without deployment opportunities.
