Episode 198 | Autonomy Economy: Tesla's Robotaxi Gamble: License FSD to Automakers or Go At It Alone

Pete Bigelow, Senior Reporter, Automotive News joined Grayson Brulte on The Autonomy Economy podcast to discuss Tesla’s robotaxi gamble and the prospects for Tesla to license FSD. 

In this wide-ranging conversation, Grayson and Pete dive into the bold promises and ambitious plans surrounding Tesla’s bid to launch CyberCab and a robotaxi service. As Tesla prepares to unveil more details on August 8th, they analyze what it could mean for the future of autonomy and mobility.

Grayson and Pete explore whether Tesla will actually show two separate vehicle models — one with traditional controls (potentially the Model 2) and a fully autonomous version without a steering wheel or pedals. The big questions linger: When will Cybercab realistically deploy commercially? And just how good will the self-driving technology be when it is first deployed?

The rise of Tesla’s robotaxi ambitions has sparked concerns about being Uber being potentially disrupted. But making the economics work with such an expensive vehicle platform remains a huge challenge. Could a Tesla subscription service bundled with incentives make a Tesla robotaxi more accessible?

As the conversation evolves, Grayson and Pete also analyze the strategic options for established automakers and if they should consider licensing Tesla’s self-driving software. Or should they choose to develop their own systems with Nvidia and Qualcomm? Or pursue potential licensing agreements with Cruise, Waymo or Zoox? 

Zoox is interesting as the company is planning to launch service in Las Vegas which gives the company unique opportunities to embrace Vegas and create “experiences” such as mobile gambling in partnership with casinos.

Ultimately, the road to Tesla deploying commercial robotaxis at scale remains riddled with technological, regulatory and business model hurdles. But with Tesla all-in on the robotaxi future, the stakes are escalating for the entire auto industry to map out its autonomy strategy.

Recorded on Friday, April 26, 2024 

Episode Chapters

0:10 Tesla CyberCab

2:20 Tesla Mobility Platform

5:14 Tesla Subscription Platform

19:55 Camera Only

23:30 Licensing FSD

35:10 Licensing Cruise, Waymo, Zoox

38:39 NVIDIA & Qualcomm

41:05 Zoox & Casinos 

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