Key facts
- Tesla's robotaxi service saw a 36% decrease in paid miles driven in the second quarter compared to the first.
- CEO Elon Musk cited the need to gather specific driving data for the new Cybercab model as a reason for slower scaling.
- Tesla executives emphasized a cautious approach to safety to avoid accidents and potential regulatory clampdowns.
- The company has expanded its robotaxi operations to six cities across Texas and Florida.
- Tesla reported three crashes caused by remote teleoperator actions and multiple low-speed impacts with objects.
Tesla's robotaxi network is experiencing a slower-than-anticipated rollout, with a significant decrease in paid miles driven during the second quarter compared to the first. Executives, including CEO Elon Musk, have adopted a more cautious tone, citing the need to accumulate specific driving data for the new Cybercab model and a strong emphasis on safety to avoid negative media attention and regulatory intervention.
In the second quarter, Tesla's robotaxi fleet covered approximately 700,000 miles with paying passengers, a drop of about 36% from the 1.1 million miles logged in the first quarter. This decline contrasts with the company's previous optimistic projections and aggressive stance on autonomy. Despite this, Tesla has expanded its nascent operation to six cities across Texas and Florida, utilizing a mix of unsupervised and supervised vehicles.
Musk explained that before deploying a large number of Cybercabs, the company must gather specific driving data with these purpose-built vehicles, which are currently retrofitted with steering wheels and pedals. This approach marks a shift from Tesla's prior claims that its existing fleet of nearly 10 million customer cars had been collecting data in the background for future robotaxis.
Tesla's VP of AI, Ashok Elluswamy, highlighted the company's safety record, stating that their robotaxis have driven over 380,000 miles without a safety operator onboard and have had "zero notable incidents." However, Tesla has reported 22 crashes to the National Highway Safety Administration, including three caused by remote teleoperators and multiple instances of vehicles hitting objects at low speeds. The company also emphasized its camera-only autonomy system, challenging the industry's reliance on lidar and radar.
Both Musk and Elluswamy expressed confidence in future growth, noting that unsupervised miles have increased by roughly 10% weekly since their introduction late last year. Tesla's stock experienced a significant decline of over 13% in early trading on Thursday following the earnings call.