Latest news with #ProjectRodeo
Yahoo
16-05-2025
- Automotive
- Yahoo
Tesla's Robotaxi Plans Under Federal Scrutiny Ahead Of Austin Launch As Elon Musk Vows Nationwide Rollout By Year-End
Federal regulators are pressing Tesla Inc. (NASDAQ:TSLA) for details on how its driverless taxis will operate safely in challenging conditions as the electric vehicle maker prepares for a pivotal robotaxi launch in Austin next month. What Happened: The National Highway Traffic Safety Administration (NHTSA) has requested information on how Tesla's autonomous vehicles will handle fog, sun glare, rain, and other low-visibility situations linked to previous accidents involving the company's driver-assistance software, according to a nine-page letter, according to an Associated Press report on Wednesday. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. The team behind $6B+ in licensing deals is now building the next billion-dollar IP empire — invest early at $2.25/share. CEO Elon Musk has reassured investors the Austin launch will proceed as planned, laying the groundwork for 'millions of robotaxis' nationwide by year-end. 'Can you go to sleep in our cars and wake up at your destination?' Musk asked during an April earnings call. 'I'm confident that will be available in many cities in the U.S. by the end of this year.' The federal inquiry comes amid Tesla's intensive 'Project Rodeo' testing in Austin, where approximately 300 operators have been secretly evaluating prototype self-driving software, Business Insider reported. Why It Matters: The company has been accumulating 'critical miles,' conducting training with local first responders, and testing its robotaxi app ahead of a targeted June 1 launch. Industry veterans remain skeptical of Tesla's readiness. Former Waymo CEO John Krafcik publicly questioned whether the company's Cybercab concept incorporates necessary safety features, stating a 'serious robotaxi would demonstrate the primacy of safety.' Tesla's stock has risen 45% since Musk announced he was stepping back from his role in President Donald Trump's administration to focus on the company, though shares remain down 17% year-to-date. With first-quarter profits down 71%, the success of the robotaxi initiative has become increasingly critical to justify Tesla's valuation. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.30/share! Image Via Shutterstock Send To MSN: Send to MSN Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Tesla's Robotaxi Plans Under Federal Scrutiny Ahead Of Austin Launch As Elon Musk Vows Nationwide Rollout By Year-End originally appeared on Sign in to access your portfolio
Yahoo
02-05-2025
- Automotive
- Yahoo
Short Seller Jim Chanos Slams Tesla Robotaxi Economics As 'Ridiculous,' Citing Dead Miles, Insurance Costs And Cleaning Expenses
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Prominent short seller Jim Chanos criticized Tesla Inc.'s (NASDAQ:TSLA) robotaxi economic projections on Monday, calling the figures 'ridiculous' and pointing to several overlooked cost factors. What Happened: Chanos, responding to a Tesla investor's profit calculations on X, highlighted that 'roughly half of all ride-hailing miles are 'dead' (non-revenue) miles.' He also noted commercial auto insurance costs '3- 4x personal auto insurance' at approximately '30-40 cents per mile,' with additional expenses for cleaning at $400 per month. Chanos argued that the major cost for a Robotaxi fleet would be redundancy, safety, and monitoring, which the Massachusetts Institute of Technology has estimated could range from $0.05 to $2.35 per mile, depending on regulations. He also questioned the viability of Tesla's projections by pointing out that the entire U.S. taxi and ridesharing market is expected to be valued at $50 billion to $75 billion in 2024. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — When challenged about potential higher revenue, Chanos expressed doubt, citing consumers' ability to 'operate their own vehicles at a marginal cost of 50-60 cents per mile' and noting that 'commoditized service markets tend to converge revenues to marginal cost.' Why It Matters: Tesla has been preparing for its limited robotaxi launch in Austin this June, with CEO Elon Musk announcing plans to deploy only 10-20 vehicles initially. The company has already launched an employee-only autonomous ride-hailing service in Austin and San Francisco, completing over 1,500 trips covering 15,000 miles. Investor Gary Black recently described the upcoming launch as 'an experiment' rather than a true market test, citing the limited deployment and 'asymmetry of risks.' Former Waymo CEO John Krafcik has also questioned Tesla's readiness for autonomous taxi operations. Despite skepticism, Tesla has intensified testing efforts with approximately 300 drivers in Austin under 'Project Rodeo,' while collaborating with local emergency services and developing its robotaxi app for the planned June 1 launch. Read Next: It's no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here's how everyday investors are getting started. Arrived Home's Private Credit Fund's has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Image Via Shutterstock Send To MSN: Send to MSN This article Short Seller Jim Chanos Slams Tesla Robotaxi Economics As 'Ridiculous,' Citing Dead Miles, Insurance Costs And Cleaning Expenses originally appeared on
Business Insider
25-04-2025
- Automotive
- Business Insider
Insiders reveal how Tesla is preparing for its June robotaxi launch
Tesla is racing toward its planned robotaxi debut in June, with hundreds of test drivers quietly laying the groundwork across Austin. Over the past few months, about 300 Tesla test operators have been driving through the city's streets around the clock using prototypes of the company's self-driving software as a part of the program the company internally calls " Project Rodeo." In the months leading up to the launch, Tesla has held a training event with local first responders, worked to build up "critical miles," formed a team of remote operators, and rolled out a test version of its robotaxi app to Autopilot engineers in Austin and San Francisco. The carmaker has used test drivers to hone its advanced driver-assist software since at least 2016, but Tesla has intensified its efforts over the past year, four current and former workers told Business Insider. During Tesla's layoffs in April 2024, it eliminated several test drivers and moved Project Rodeo from general vehicle testing to the Autopilot department under Ashok Elluswamy, its vice president of AI software, three people with knowledge of the situation told BI. Since then, the intensity of the program has increased substantially, and many workers have shifted from updating Tesla's Full Self-Driving system to robotaxi development, two people said. A looming deadline Internally, Tesla has set a June 1 deadline for the launch, insiders said, and Musk has been told during weekly Autopilot meetings with Elluswamy's team that the company is on track to hit it. Workers said they had not received details about the event or what it would entail. Publicly, it has provided a handful of details. On Tesla's earnings call Tuesday, Musk said Austin residents would be able to pay to ride in a self-driving Model Y. He estimated that the program would launch with 10 to 20 cars. "It feels very forced," a former worker said. "It's this breakthrough moment for Tesla, but there is also this feeling of so many last-minute details being up in the air." One worker described the June 1 deadline as more "aspirational" or "motivational." "A June 1 deadline makes a June 30 launch more likely," they said. Tesla has not publicly announced a precise date for the event beyond "June." The company did not respond to a request for comment. Key hurdles The former employee said hitting a June 1 deadline presents challenges due to the difficulty of logging critical miles — testing done in complex or high-risk driving situations, such as navigating heavy traffic, handling unprotected left turns, or responding to sudden obstacles. These scenarios are crucial for evaluating whether the self-driving system can handle edge cases without human intervention. Test drivers who spoke with BI described the testing process involved in accumulating critical miles. Tesla assigns test drivers to specialized testing routes, including "critical" tracks, where they're encouraged to avoid intervening, and "adversarial" tracks, which simulate emergency scenarios like reentering traffic from a roadside stop. Elluswamy said during the earnings call that it's "super rare" to get critical interventions and that test drivers can go days without an intervention. "You can't easily know whether you are improving or regressing in your capacity" with the autonomous software, he said. Tesla has also been working with local emergency services, documents obtained by BI show. The company met with the city's autonomous vehicle task force, which includes members of the Austin Fire Department, in December. It first reached out in spring 2024, documents show. In March, Tesla performed about six hours of testing with local first responders, including members of the police and fire departments, at a closed testing track, one former worker said. About 60 drivers were split between Tesla test vehicles and personal vehicles in order to mimic normal traffic scenarios, the person said. A spokesperson from the Austin Police Department confirmed that Tesla held a testing day with first responders from Austin, Williamson County, and the Texas Department of Public Safety. Representatives for the Austin Fire Department and the autonomous vehicle task force did not respond to a request for comment. Engineers are testing out the robotaxi app Tesla has begun demoing its robotaxi app with employees. The carmaker released an Apple TestFlight version to engineers earlier this year. It was released in Austin and the San Francisco Bay Area. It allows Tesla employees to get free rides within a geofenced region, a virtual area that denotes where the vehicle can safely operate, two people said. In Austin, the robotaxi service is set to roll out across such an area, a person with knowledge of the program said. The demo program features a safety driver who sits in the driver's seat and can take over when needed. There has been some discussion around using remote operators as safety drivers for the public rollout, two people familiar with the matter said. The workers operate in a designated facility in California with remote controllers, one person said. The company has moved some test drivers into remote operator roles, two people said. Tesla had remote operators on deck during its robotaxi event in October; the workers are told to take over only in the event of an emergency, much like Waymo's or Zoox's remote operators, they said. While Austin and San Francisco remain high-priority testing areas, Tesla employs test drivers across other cities, including New York, Phoenix, Seattle, and Atlanta. Musk has said the self-driving cars will roll out to other cities over the course of the year. For now, Austin is the key stomping ground for Tesla test drivers. "There's just always a convoy of Teslas just going all over to Austin in circles," Musk said Tuesday. "It's going to look pretty bizarre."
