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Tesla’s (TSLA) push toward a fully autonomous future is gaining momentum, with a recent tweet from Maye Musk, mother of CEO Elon Musk, shedding light on the company’s latest innovation.
“The most insane thing is, you sit in a seat and there is no steering wheel nor foot pedals. It takes a while to enjoy just sitting as if you’re in your lounge, while driving to your destination 😳 @Tesla 😍😍👏👏”
This enthusiastic post is in response to a brief video tour of Tesla’s new robotaxis, showing significant strides in its steering-wheel-free, fully autonomous vehicle. The robotaxi has a sleek, light-gold exterior with nothing but seats and a large screen in its interior.
Tesla’s Autonomous Future: What We Know So Far
Tesla has long touted its Full Self-Driving (FSD) software as the key to a driverless future. Elon Musk has repeatedly claimed that Tesla would transition into an autonomous ride-hailing company, competing with Uber and Lyft by offering self-driving vehicles that generate income for owners when not in use.
In August 2024, Tesla officially unveiled its Cybercab — a futuristic electric vehicle designed with no steering wheel or pedals. The car, expected to be a key component of Tesla’s robotaxi fleet, relies entirely on artificial intelligence (AI) and Full Self-Driving technology to operate.
Key Features of the Cybercab:
- No manual controls (steering wheel or pedals removed)
- AI-powered autonomous driving system
- Lounge-style seating for a comfortable, hands-free ride
- Estimated price under $30,000
- Expected production timeline between 2026-2027
Tesla also unveiled a self-driving electric minibus, the “Robovan,” designed to carry up to 20 passengers in urban environments. This vehicle aims to provide autonomous public transport solutions.
Can Tesla’s Full Self-Driving (FSD) Finally Deliver?
While Tesla’s vision is ambitious, its FSD technology has faced ongoing scrutiny from regulators, safety advocates, and even customers. Despite being labeled “Full Self-Driving,” the software still requires driver supervision, and the company has yet to achieve full Level 5 autonomy, in which no human intervention is needed.
Elon Musk has long promised that fully autonomous Teslas are just around the corner. However, repeated delays, safety concerns, and legal challenges have raised questions about whether the technology is ready for mass adoption.
Regulatory Hurdles:
- The National Highway Traffic Safety Administration (NHTSA) continues to investigate Tesla’s FSD crashes.
- Tesla had to recall 2 million vehicles in 2024 to update its Autopilot system after safety regulators found it “inadequate” for ensuring driver attention.
Consumer Backlash:
- Several Tesla owners have sued the company, claiming that FSD does not deliver on its promises.
- Despite frequent updates, Tesla drivers still experience issues with phantom braking, incorrect lane changes, and inconsistent decision-making.
Tesla’s Stock and Financial Outlook
Tesla’s stock (TSLA) has seen wild fluctuations in recent months, reflecting investor uncertainty over its autonomous strategy. Currently, there are widespread protests, boycotts, and vandalism surrounding the brand due to Musk’s ongoing political ambitions. After the election, Tesla stock climbed roughly 100% to a high of $488.54, but has since pulled back considerably. On March 10, Tesla dropped 16% alone. In February, Tesla saw a 23% decline, with March currently on pace for even worse performance.
Challenges and Competitors in the Autonomous Race
Tesla isn’t alone in its pursuit of fully autonomous vehicles. Several companies, including Waymo (owned by Google's parent company Alphabet (GOOGL)), Cruise (owned by General Motors (GM)), and Baidu (BIDU) in China, are also investing billions into self-driving technology.
- Waymo already operates robotaxi services in select U.S. cities like San Francisco and Phoenix.
- Baidu’s Apollo Go program runs autonomous ride-hailing services in China.
- Legacy automakers like Mercedes-Benz and Ford (F) are incorporating Level 3 autonomy, in which cars can drive themselves on highways with minimal human oversight.
However, Tesla’s approach differs significantly from its competitors. While companies like Waymo rely on LiDAR (laser-based sensors) and detailed mapping, Tesla’s FSD software is vision-based, using cameras and neural networks to interpret surroundings.
Is the World Ready for Steering-Wheel-Free Cars?
Maye Musk’s reaction highlights the psychological shift required for passengers to trust fully autonomous vehicles. Sitting in a car with no steering wheel or pedals is an entirely new experience, and widespread consumer adoption may take time.
Public trust remains a key challenge:
- A 2024 Pew Research study found that 62% of Americans do not feel comfortable riding in a self-driving car.
- Major cities like San Francisco and Phoenix have seen protests against robotaxis, with concerns over safety, job losses for drivers, and traffic congestion.
- Legal battles over self-driving crashes continue to shape public opinion, with incidents involving Cruise, Waymo, and Tesla's FSD system still under investigation.
Elon Musk’s Endgame: Tesla as an AI Company
Despite these challenges, Elon Musk is betting Tesla’s future on AI and autonomy. He has repeatedly stated that Tesla is not just an EV company, but an AI and robotics company, positioning it for a future where transportation is dominated by self-driving fleets.
Musk sees FSD, Tesla’s Optimus humanoid robots, and AI-powered logistics as the pillars of Tesla’s long-term value.
However, investors remain split on whether Musk’s aggressive timeline for autonomy is realistic or if it’s another case of over-promising and under-delivering.
What’s Next for Tesla and Self-Driving Cars?
- Tesla plans to expand FSD capabilities in 2025, rolling out new updates to Model 3 and Model Y vehicles in California and Texas.
- Cybercab production is expected to begin between 2026 and 2027, though regulatory approvals could delay the rollout.
- New AI advancements could improve FSD reliability, but legal and public perception challenges remain.
Maye Musk’s tweet reflects a first-hand glimpse into Tesla’s bold vision for the future. But whether that vision becomes a game-changing revolution or a prolonged struggle against technological and regulatory hurdles remains to be seen.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.