The electric vehicle giant Tesla, led by CEO Elon Musk, has sent shockwaves through the ride-hailing industry with its latest announcement: the Cybercab. This new ride-hailing service is currently undergoing testing on the streets of San Francisco, exclusively with Tesla employees. The news has resulted in a dip in the stock prices of major ride-hailing companies Uber and Lyft.
According to Benzinga Pro data, Uber shares fell by 2.12%, while Lyft shares dropped by 1.54% in Thursday’s pre-market session following Musk’s announcement. The development comes as a direct challenge to established players like Uber and Lyft.
During Tesla’s recent earnings call, Musk revealed that the Cybercab service is operational for Tesla employees in the Bay Area. The service utilizes a development app and a safety driver. Musk emphasized that the software for this service is already developed and ready for deployment.
The ambitious plans for Cybercab don’t stop there. Musk has outlined a roadmap for public rollout in California and Texas next year. While California’s regulatory process might cause delays, Texas is expected to approve the service more quickly. Musk projects that the service will be available in both states, and potentially other regions, by next year.
Tesla’s ambitions for Cybercab go beyond a mere ride-hailing service. Musk envisions a future where Cybercabs achieve volume production by 2026, targeting at least 2 million units annually, with a potential increase to 4 million. This ambitious expansion indicates a significant shift for Tesla, moving beyond its traditional vehicle and battery manufacturing focus.
The potential impact of Tesla’s Cybercab on the ride-hailing market is a major topic of conversation. Uber CEO Dara Khosrowshahi has acknowledged Tesla’s potential in achieving vehicle autonomy at scale, but has also expressed his faith in Waymo (developed by Google parent Alphabet Inc.) for the next five years.
The news of Tesla’s Cybercab testing has sent ripples through the investment world, leaving investors wondering how this new player will reshape the landscape of the ride-hailing industry. As Tesla moves forward with its ambitions, the future of ride-hailing promises to be a captivating contest between established players and the disruptive force of Tesla’s Cybercab.
