Tesla's Cybercab Robotaxi Service Experiences Mixed Reviews and Slow Growth in Austin

Cybercab Rollout and Initial Challenges

Tesla launched its Cybercab driverless ride-hail service in Austin on September 3. Since then, the company has increased its authorized fleet in Texas from 45 to 169 vehicles. The bronze two-seater vehicles operate without a steering wheel, pedals, or traditional mirrors.

Passenger Feedback and Technical Issues

Initial passenger reviews for the Cybercab have been mixed. Users reported lengthy wait times, incorrect pickup and drop-off locations, and technical difficulties with the vehicles' butterfly doors and trunks. These issues were shared online following the service's launch.

Impact on Tesla's Business and Investor Sentiment

The performance of the Robotaxi service is crucial for Tesla, as the company aims to regain investor enthusiasm. Tesla's shares are down 18% this year, making it the only megacap tech stock with negative returns. The company also reported a 2% year-over-year drop in vehicle deliveries for the third quarter, and its core automotive business has seen consecutive annual revenue declines due to competition from Chinese EV makers.

Competitive Landscape

In contrast to Tesla's limited rollout, Alphabet's Waymo operates in 15 U.S. markets with plans for 15 more, alongside international expansion. Waymo has 1,154 autonomous vehicles authorized for commercial use in Texas, including 359 Ojai models. Waymo conducts over 500,000 paid rides weekly and has completed 270 million fully autonomous commercial miles domestically, with over 4,000 driverless vehicles in commercial operation across the U.S.