Tesla's Cybercab: Self-driving dream or a detour to disappointment

Insights

As we start 2025, enthusiasm for autonomous vehicles has diminished, with many in the automotive industry questioning the viability of Level 4 autonomy — an essential milestone for the success of services, such as Tesla's Cybercab. Can Tesla's Cybercab reignite the promise? Here we take a look at Tesla's chances of succeeding in the nascent robo-taxi market. Can it lever its fleet to beat the competition? Does its new AI 5 hardware suggest the company is capable of more than it is letting on?

The journey of autonomous vehicles began long before the unveiling of Tesla's Cybercab in October 2024. The concept of self-driving cars dates to the early 20th century, with experimental models emerging in the 1920s. Carnegie Mellon University developed the Navlab project in the 1980s, thus making the first significant strides in automation. The DARPA Grand Challenge of 2004 and 2005, plus the DARPA Urban Challenge of 2007 highlighted the potential of autonomous vehicles, igniting interest from tech giants and automakers alike.

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