Catch our conversation on Tesla’s Game-Changing Robotaxi Plans!

Tesla has lifted the curtain on a series of major revelations about its upcoming robotaxi, providing a glimpse into its strategic efforts to revolutionize autonomous transport. The recent Tesla event left industry experts and analysts buzzing as Tesla executives discussed everything from the intricacies of the robotaxi’s engineering to its potential market impact.

Jeff Lutz, a seasoned supply chain executive, offered key insights on the Brighter with Herbert YouTube channel, noting that Elon Musk’s recent moves have been “mind-boggling” in their scope and ambition.

Revealing the Cyber Cab

One of the centerpieces of Tesla’s announcement was the unveiling of what insiders are now calling the “Cyber Cab,” a two-seater robotaxi designed to change how people experience urban transport. According to Lutz, this new prototype is more than just a concept vehicle; it represents the future of mass-produced autonomous transport. “They had twenty of these out there, and it wasn’t just for show. We got in them and experienced what Tesla has been working towards,” said Lutz, pointing to the impressive scope of the demonstration.

The design of the Cyber Cab is an embodiment of Tesla’s emphasis on efficiency and purpose-driven features. Lutz highlighted that every element, from the doors to the seats, has a reason behind it. “This isn’t just about aesthetics,” he said, emphasizing the utilitarian nature of Tesla’s choices. “Tesla has always been about pushing boundaries, and here it’s about engineering for functionality and cost-efficiency. This is what will make scaling these vehicles feasible.”

Autonomous Driving & Hardware 3

One of the major questions surrounding the Cyber Cab was whether it would run on Tesla’s existing autonomous technology. During the event, Kim Java interviewed Tesla executives Franz von Holzhausen and Lars Moravy, who confirmed that the Cyber Cab leverages Tesla’s Full Self-Driving (FSD) software, and even older vehicles equipped with Hardware 3 could be made ready for robotaxi duties. “Yes, it’s good to go even with Hardware 3,” Moravy stated, dispelling doubts about the capability of earlier models. This revelation points to Tesla’s broader approach of making its entire fleet adaptable, a strategy that promises to extend the operational life and usefulness of its older cars.

Lutz elaborated on this point, mentioning how Tesla’s steer-by-wire technology is playing a critical role in these advancements. “Tesla is using the Cybertruck as a platform to refine steer-by-wire technology, which is crucial for scaling the Cyber Cab,” Lutz explained. “They’ve figured out how to get it right with the Cybertruck, and now they can scale that to the robotaxi. It’s all about building on existing innovations to move faster.”

Why No Steering Wheel?

Another key feature of the Cyber Cab is the option to remove the steering wheel, an idea that seems counterintuitive but makes perfect sense in Tesla’s grand strategy. “Tesla wants to build a super set that leaves the factory in one way and then adapts to customer needs,” said Lutz. “If a customer needs a steering wheel, it can be added. If they don’t, it stays out, which ultimately reduces manufacturing complexity. Tesla’s objective here is clear—reduce changeover and maintain production efficiency.”

The robotaxi is a two-seater, which some analysts have speculated is part of a plan to eventually evolve the vehicle into a $25,000 mass-market car. Lutz commented, “It makes perfect sense. This is Tesla testing the waters. If they can do this with a robotaxi, then scaling down to a compact model, including options like a steering wheel, is entirely possible.”

Elon Musk’s Long-Term Vision

Lutz believes that Musk’s ambitious vision for Tesla’s robotaxi goes well beyond what other companies have managed so far. “You see companies showing off flashy prototypes that ultimately fail to scale economically. Tesla starts with production solutions—they design for scale from day one. That’s the difference,” Lutz emphasized.

Just unbelievable https://t.co/KpJV3j1W68

— Jeff Lutz 🔋 (@thejefflutz) October 13, 2024

He also reflected on the significant improvement in AI and hardware integration since Tesla’s AI Day in 2022. “I was there, sitting in the third row. In just 24 months, they’ve gone from a single humanoid walking on stage to an entire army of Tesla Bots interacting and serving drinks,” Lutz said. “The rapid progress they’ve made—both with autonomous cars and robotics—is something no one else in the market has come close to achieving.”

The First Robotaxi Customers: Salesforce?

One of the unexpected revelations during the event was the potential for Salesforce to become one of the first major customers for Tesla Bots. Mark Benioff, CEO of Salesforce, was in attendance and appeared impressed with the capabilities of Tesla’s humanoid robots. Benioff hinted at a future collaboration, posting about using these robots to power Salesforce’s “agent force,” essentially putting Tesla Bots in customer service roles in various sectors.

“Mark knows partnerships,” said Lutz. “He was there for a reason—to see if Tesla’s vision could integrate into Salesforce’s ecosystem. The Bots’ ability to serve drinks and interact with people shows they’re beyond just a concept. It’s a functioning reality. If Salesforce signs on, it’s the beginning of a massive new market for Tesla.”

No $25,000 Compact Car—Yet

Despite speculation, Tesla did not unveil a new $25,000 compact car during the event, and Lutz wasn’t surprised. “Tesla is not going to introduce a lower-cost vehicle until they have the right timing to manage existing inventory and avoid any disruptions in their current supply chain,” he said. “It’s about avoiding what’s called ‘excess and obsolescence’ (E&O). Introducing a new model too soon would create a financial liability in the form of unsold inventory. Tesla is playing the long game, and they’re not going to risk their balance sheet just to satisfy market rumors.”

Lutz pointed out that Tesla’s approach to reducing the cost of the Cyber Cab—from the simple, non-motorized seats to the single-pane side windows—is all part of making autonomous vehicles economically viable. “Elon Musk said it would cost around $30,000, and that likely includes FSD,” Lutz added. “The economics of this vehicle are focused on hitting the price point needed for mass adoption, but not at the expense of Tesla’s production efficiency.”

Scale and Simplicity: The Tesla Advantage

At its core, Tesla’s robotaxi is built for scale. The company has thought through every aspect of the vehicle—from wireless charging to optimized seat designs that facilitate faster cleaning—all with the goal of reducing cost and increasing operational efficiency. “Tesla’s vision isn’t just about putting an autonomous car on the road,” Lutz said. “It’s about an integrated system, including charging, maintenance, and even cleaning—all designed to scale.”

According to Lutz, the absence of a charge port and the move towards wireless charging is a bold step. “Five years from now, wireless charging will be the norm, and Tesla is already building for that future. The reduction in complexity and cost from removing traditional charging components is significant.”

The Bigger Picture: Partnerships and the Future of Tesla

Lutz believes the event served as more than a tech showcase—it was a signal to potential partners that Tesla’s solutions are ready for real-world applications. “In 2022, the event was about recruitment, about showing off Tesla’s engineering prowess,” Lutz explained. “This year, it was about partnerships. There were CEOs and corporate executives everywhere—people who could see firsthand the potential of these robots and autonomous cars to transform their own operations.”

“What people don’t realize is that Tesla isn’t just selling cars anymore,” Lutz continued. “They’re selling solutions—FSD, Optimus, software, and now potentially, robots. The sum of Tesla’s parts is becoming far greater than the whole, and no one’s properly modeling this yet. Tesla is about to fundamentally change the game, and this event was just the beginning.”

Tesla’s robotaxi project is more than just a new model of transport—it’s the embodiment of Elon Musk’s vision for scalable, autonomous solutions. As Tesla navigates partnerships, prepares to scale its production, and explores new applications for its AI and robotics, it’s clear that the company is playing at a different level. Jeff Lutz summed it up well: “Tesla’s not just a car company anymore—it’s a technology company building the future.” As Tesla brings the Cyber Cab closer to reality, it signals the dawn of a new era in transport, manufacturing, and human-machine collaboration, with the potential to disrupt industries far beyond the automotive sector.