Elon Musk unveils two-door robotaxi, no production until 2026

Elon Musk showcased a robotaxi with two gull-wing doors and no steering wheel or pedals during a splashy event at a Hollywood studio on Thursday and added a robovan to the roster as Tesla's goal shifts from low-priced mass-market automaker to robotics manufacturer.

Musk reached the stage in a "Cybercab" which he said will go into production in 2026, priced at less than $30,000, adding that the robotaxis don't have steering wheels or pedals.

Musk has been saying for more than five years that a fleet of robotaxis is near, allowing Tesla owners to make money by having their cars carry passengers while they're not in use by the owners.

He said the cars rely on artificial intelligence and cameras and do not need other hardware like what robotaxi rivals use – an approach investors and analysts have flagged as challenging both from a technical and regulatory standpoint.

Musk also showcased a larger, self-driving vehicle – called Robovan – capable of carrying up to 20 people, and showed off Tesla's Optimus humanoid robot.

Musk estimated that the robots would cost between $28,000 to $30,000 and would be able to babysit, mow lawns, fetch groceries, among other tasks.

Investors expecting concrete details on how quickly Tesla can ramp up robotaxi production, secure regulatory approval and implement a strong business plan to leapfrog rivals such as Alphabet's Waymo were left disappointed.

"Everything looks cool, but not much in terms of time lines, I'm a shareholder and pretty disappointed. I think the market wanted more definitive time lines," said Dennis Dick, equity trader at Triple D Trading. "I don't think he said much about anything ... He didn't give much info."

Billion of dollars have been lost for other companies attempting to crack the robotaxi market, forcing some to shut shop.

Missed promises

Musk said in 2019 he was "very confident" the company would have operational robotaxis by the next year. After missed promises, Musk this year diverted his focus to developing the vehicles after scrapping plans to build a smaller, cheaper car widely seen as essential to countering slowing electric vehicle (EV) demand.

Unlike expensive hardware such as lidar that others use, Musk is relying only on cameras and AI to run FSD to keep costs down. But FSD, which requires constant driver attention, has faced regulatory and legal scrutiny with at least two fatal accidents involving the technology.

"We do expect to start fully autonomous unsupervised FSD in Texas and California next year. Musk said. "That's with the Model 3 and Model Y."

He did not say if the robotaxis will use any new technology or depend on FSD.

Tesla also launched pre-order for its second-generation Roadster in 2017, teasing of availability in 2020. But those who paid a $50,000 deposit are still waiting for the cars to deliver.

Tesla is at risk of posting its first-ever decline in deliveries this year as buying incentives have failed to attract enough customers to its aging EV lineup. Steep price cuts meant to offset high interest rates have also squeezed profit margins.

(With input from agencies.)