The launch of Tesla’s (TSLA) robotaxi marks one of the most consequential in the company’s history – if only, because Elon Musk has hailed this as the future for nearly a decade. For eight years, Musk has teased the vision of a shared fleet of fully-autonomous Teslas, with the promise of that technology contributing significantly to the company’s valuation.
The long-anticipated launch comes amid increased scrutiny about the promise of self-driving technology. While Google’s Waymo has logged more than 22 million rider miles with few incidents in select cities, accidents involving GM’s Cruise and Tesla’s autopilot technology have raised questions about the technology’s ability to scale safely.
Amazon’s Zoox is providing a potential template for the future, building vehicles for the sole purpose of ferrying passengers autonomously, without the traditional controls like a steering wheel and pedals. The company says that their new technology will ensure cost efficiency and safety.
Founder Jesse Levinson said that Zoox’s robotaxi is fundamentally different from Tesla’s driver assistance system, as Tesla vehicles require drivers to be ready to take control at any moment.
While Zoox doesn’t rely on human drivers for assistance, the company does use remote operators to guide the vehicle in rare situations.
“The vehicles are only getting help from humans only 1% of the time,” Levinson said. “As it gets more sophisticated, the amount of time they’re asking for help goes down.”
Still, critics question the economics and safety of self-driving taxis, noting that current autonomous rides are more expensive than car ownership, despite being cheaper than traditional rides.
While Tesla investors are optimistic about robotaxis, experts believe substantial revenue is still years away.