Tesla Cybercab faced challenges in Austin, expansion ahead
A month after Tesla's Cybercab launched in Austin, Texas, the company has quadrupled the number of authorized driverless vehicles. User feedback has been mixed.
Tesla has nearly quadrupled the number of its driverless Cybercab vehicles authorized for commercial use in Austin, Texas, since the service's launch in early September. The company now has 169 vehicles permitted for operation. Expansion and service improvements are critical for maintaining investor confidence as Tesla's core automotive business faces stiff competition and has shown a downward trend.
The Cybercab vehicles, which lack steering wheels and pedals, have received mixed reviews from paying passengers. Many have shared their experiences online, citing long wait times, incorrect pick-up and drop-off locations, and technical issues with features such as the doors. These user-facing challenges highlight Tesla's need to rapidly enhance its driverless technology.
Tesla's stock value has declined this year, and the company requires new growth drivers. While third-quarter deliveries exceeded expectations, they still marked a 2% year-over-year decrease. Competition, particularly from Chinese manufacturers like BYD and Xiaomi, is intensifying in Europe and Asia.
Tesla's competitor Waymo is already more established, operating in 15 U.S. cities and planning international expansion. Waymo has 1,154 autonomous vehicles permitted in Texas and conducts hundreds of thousands of paid rides weekly. Tesla is currently focused on Austin, where its Cybercab service is the only driverless taxi operation.