Tesla Inc. has decided to postpone the unveiling of its robotaxi until October. This decision was made to allow the development teams more time to build additional prototypes, according to sources familiar with the matter.
The delay of approximately two months has been communicated internally, according to sources who requested anonymity as the information was not yet public. The design team was instructed this week to refine certain aspects of the car, according to one source.
Chief Executive Officer Elon Musk initially set the unveiling date for Aug. 8. The anticipation surrounding this event has contributed to an 11-day streak of gains for Tesla’s stock, adding over $257 billion to its market capitalization. However, the stock closed down 8.4% on Thursday, marking its largest drop since January.
Musk has not responded to requests for comment.
Shares of potential robotaxi rivals Uber Technologies Inc. and Lyft Inc. both saw significant increases following the news. Uber’s stock rose 6.1% on Thursday, while Lyft shares jumped 4.6%.
Tesla has been exploring the concept of creating an autonomous taxi service for years, dating back to at least 2016 when Musk authored a second “Master Plan” for the company. In recent months, the CEO has prioritized this project over the development of an electric vehicle cheaper than Tesla’s most affordable model, the Model 3 sedan.
Musk has been promoting Tesla’s work on autonomous vehicle technology for over a decade, persuading customers to pay thousands of dollars for a suite of features the company markets as Full Self-Driving, or FSD. While the name is misleading — FSD requires constant supervision and does not make Teslas autonomous — Musk and top engineers have become increasingly optimistic about FSD in recent months as the company’s vehicle sales have slowed.
Tesla delivered 6.6% fewer cars in the first half of the year, despite adding a new model — the Cybertruck — to its lineup. The automaker also produced 14% fewer vehicles in the second quarter compared to the previous year to help reduce inventory levels.