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Uber’s CEO Poured Cold Water All Over Elon’s Robotaxi Plan

By Stocks News   |   Aug 14, 2024 at 02:10 PM EST   |   Stock Market News
Uber’s CEO Poured Cold Water All Over Elon’s Robotaxi Plan

Elon’s been having a rough go of it lately. The guy’s fighting with a judge and investors to reapprove his $56 billion pay package. 

Then there was that little snafu Monday night with his Trump livestream getting postponed because it got hacked. And if that wasn’t enough to keep him up at night, Tesla’s taking heat from fans and the media for quietly deleting the original Cybertruck price promised in 2019 and slapping on an extra $60,000.

Well now, just when you thought Elon caught a break, Uber’s CEO Dara Khosrowshahi is here to throw a little more shade Elon’s way. Khosrowshahi recently shared some thoughts on Elon’s latest fantasy—Tesla’s robotaxi. To put it nicely, he’s not exactly on board.

During an interview on The Logan Bartlett Show, Khosrowshahi didn’t hold back. He basically said that Tesla’s plan to flood the streets with robotaxis, using current Tesla owners’ cars, is about as realistic as expecting Twitter’s name change to X would help the company become profitable. “Probably the times at which you’re going to want your Tesla are probably going to be the same times that ridership is going to be at a peak,” Khosrowshahi pointed out. In other words, good luck finding an available robotaxi when you actually need one.

Khosrowshahi wasn’t done yet. He also raised a rather sticky issue—safety. Sure, robots might be better drivers than humans. Heck, they might even be 10 times better. But when those robots are still responsible for about 10 deaths a day, as Khosrowshahi pointed out, society might not be so quick to hop on board the autonomous vehicle train. “I don’t know if society is ready to accept that,” he added. After all, people seem to tolerate human error on the road because, well, we’re only human. But a robot making a mistake? That’s a whole different ball game.

Meanwhile, while Tesla’s stock has taken a 20% hit this year due to slowing EV sales and bearish investor sentiment, Uber’s been quietly riding high. Its stock is up about 11% so far this year. To top it all off, Khosrowshahi’s got some serious doubts about whether Tesla owners even want to play along with Musk’s robotaxi vision. Let’s be real—are folks who dropped $100k on a shiny new Tesla really going to let a bunch of strangers pile into their car and treat it like the backseat of an Uber? Khosrowshahi doesn’t think so. And honestly, can you blame him? It’s one thing to let your buddy borrow your car for the weekend, but letting it loose to the general public? That’s a whole different kind of trust.

Despite all the skepticism, Elon’s not backing down. He’s already got another robotaxi event scheduled for October, where he’s expected to show off the latest prototypes and maybe even some kind of business plan. Whether or not it’ll be enough to convince the doubters remains to be seen.

Stock.News has positions in Tesla and Uber.

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