Elon Musk says Tesla will launch Robotaxi on August 8, stock jumps 5.1%

Electric carmaker Tesla Inc. is set to unveil its long-awaited Robotaxi on August 8, CEO Elon Musk announced in a social media post on his site X (formerly known as Twitter). This comes as Tesla registers weak sales amid competition from affordable Chinese electric vehicles (EVs), Bloomberg reported.

Musk Loses Third-Richest Person Title

Following the announcement, Tesla's shares surged by up to 5.1 percent in postmarket trading in New York. Notably, however, the company's stock has witnessed a 34 percent decline this year up to Friday's (April 5) close.

Just before Musk's revelation about the Robotaxi, he lost his title as the world's third-richest person, overtaken by Meta Platforms CEO Mark Zuckerberg.

Focus Shifts to Robotaxi Over Cheaper Car

Tesla's ambitious plan for a fully autonomous vehicle initially presented to investors in 2019, has been a cornerstone of its high valuation. Recent updates include the rollout of the latest version of its driver-assistance software, marketed as FSD (Full Self-Driving), to consumers.

While Tesla has hinted at both a cheaper car and a dedicated Robotaxi as part of its next-generation vehicle platform, prototypes for either are yet to be unveiled, as per Bloomberg. Musk's post on X indicates a priority shift towards the Robotaxi, although both will be developed on the same platform.

Earlier on Friday, Reuters reported Tesla's abandonment of plans for a less-expensive vehicle, diverting resources towards the Robotaxi project. Musk promptly refuted the claim, stating, "Reuters is lying," without providing further details.

Tesla faced a production surplus of 46,561 vehicles in the first quarter, resulting in price reductions, as per Bloomberg. Amid a consumer trend favouring hybrid models over pricier EVs, manufacturers are reconsidering their electrification strategies.

Musk's bold product unveilings have historically generated excitement among customers and investors, without relying on traditional advertising. However, not all announcements translate into successful execution, exemplified by the delayed production and slow ramp-up of the Cybertruck following its highly anticipated debut in November 2019.

(With inputs from Bloomberg)