Tesla's AI-powered Robotaxi prototype has been revealed

Elon Musk has announced that the prototype “robotaxis” built for Tesla will be unveiled at an event on October 10, after an initial plan for an August 8 reveal was scrapped. Musk hinted that there will be a few other surprises at the event as well, though he didn't elaborate on what they might be. The delay in the reveal was due to Musk's decision to make significant design changes to the prototype's front end.

The robotaxi, and the “unsupervised” full-driving software that Musk says will power it, are central to Tesla's future plans. Earlier this year, Musk laid off more than 10 percent of Tesla's global staff to refocus the company's efforts on developing AI-based products, including a strong push toward autonomy.

However, this shift towards AI is clashing with Tesla's main source of profit: the sale of electric vehicles (EVs). In the second quarter of 2024, Tesla reported a profit of $1.5 billion, a decrease of 45% compared to the same period of the previous year. That profit was bolstered by a record $890 million in regulatory credit sales, but a $622 million restructuring charge significantly hurt earnings. Also, while total revenue rose 2% year-over-year, automotive revenue fell 7% to $19.9 billion.

This follows a difficult start to the year for Tesla, which saw profits drop 55% year over year in the first quarter. The company now faces the prospect of selling fewer electric vehicles in 2024 than in 2023, a significant departure from its previous growth trajectory. Tesla has tried to reassure investors by saying it is between “two big waves of growth,” with hope in the new, if controversial and expensive, Cybertruck and possible future models with a lower MSRP.

However, Musk emphasized that Tesla's long-term value lies in autonomy, including the company's Optimus humanoid robot project and self-driving cars. Despite challenges and ongoing research related to Tesla's self-driving technology, Musk remains optimistic, suggesting that the first unsupervised robotaxi ride could be possible later this year or in 2025.