Musk Promises Tesla Robotaxis Amid Rocky EV Market

Tesla CEO Elon Musk says the company will debut a robotaxi this summer.

“Tesla Robotaxi unveil on 8/8,” Musk wrote on X Friday (April 5).

The multibillionaire had predicted in 2019 that Tesla would launch a robotaxi by 2020.

His latest announcement hours after a report by Reuters that Tesla was jettisoning its plans to produce lower-cost cars and was instead focusing on its robotaxi project.

That report, citing three sources familiar with the matter and company messages viewed by Reuters, noted that this move marks “an abandonment” of what Musk has often said was Tesla’s prime goal: offering a widely available electric car.

“Reuters is lying,” Musk said in another X post.

Last week saw Tesla report an 8.5% drop in sales of its cars in the first quarter of the year, the first year-over-year decline since the onset of COVID in 2020.

Musk’s latest promise comes amid a bumpy market for electric vehicles (EVs), as PYMNTS wrote last week.

For example, Swedish automotive giant Volvo announced Thursday (April 4) that it had reached a global all-time sales milestone during a single month, selling 78,970 cars just in March, marking a 25% surge compared to the same month in 2023.

“These numbers reflect the strength of our strategy and product diversity — offering fully electric cars alongside plug-in hybrids and mild hybrids in the right mix,” Björn Annwall, Volvo Cars’ chief commercial officer and deputy CEO, said in a press release. “We are making good progress towards our annual sales target of at least 15% growth and in the months ahead we will focus on ramping-up sales of our EX30.”

Also last week, Ford reported a 86% surge in EV sales in the first quarter of 2024, alongside a 42% increase in hybrid sales compared to the prior year. All the same, wider challenges still plague the EV market in spite of companies’ brighter outlook.

“Notably, Volvo’s recent decision to cease funding for its affiliate, Swedish electric car brand Polestar, underscores the complex dynamics at play within the EV industry landscape,” PYMNTS wrote.

“Ford has also encountered setbacks in its EV endeavors, postponing the launch of two upcoming electric car models amid dwindling demand for electric cars. The production debut of its planned three-row electric SUV at the Oakville, Ontario, assembly plant has been deferred from 2025 to 2027.”