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Tesla’s Cybercab: Why the Two-Seater Robotaxi is Facing Market Doubts

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NAIROBI, Kenya- Tesla’s much-anticipated robotaxi reveal—an ultra-sleek, two-seater coupe named the Cybercab—has left investors scratching their heads. 

Unveiled by CEO Elon Musk on Thursday near Los Angeles, the prototype sports a low-slung, futuristic design, quite unlike the spacious taxis we’re used to. 

While the Cybercab’s production is slated for 2026 with a price tag below $30,000 (about Sh3.9 million), the reveal sparked more confusion than excitement, leading to a 9pc drop in Tesla stock on Friday.

Musk’s vision for a smaller, sportier robotaxi raised eyebrows for its seemingly limited functionality. 

As analysts point out, traditional taxis and ride-hailing services are expected to cater to more than just one or two passengers. 

“When you think of a cab, you think of something that’s going to carry more than two people,” said Jonathan Elfalan, vehicle testing director at Edmunds.com. 

The two-seat-only design baffled investors and analysts alike, raising questions about its practicality for everyday users, like families or travelers heading to the airport.

Even as Musk briefly teased a more spacious robovan concept that could hold up to 20 passengers, he left out key details like a release date, leaving critics to wonder if the Cybercab is more niche than mass-market. 

Beyond the unconventional design, some argue that Tesla’s Cybercab may not be able to meet the growing demand for more functional autonomous vehicles. 

Companies like Waymo, for example, already operate larger robotaxis with seating for four passengers. 

The company, owned by Alphabet, has deployed around 700 Jaguar Land Rover cars across select U.S. cities, while Amazon’s Zoox also aims to push forward with multi-passenger autonomous vehicles.

And while Musk promised an enticing operating cost of just 20 cents per mile for the Cybercab—positioning it as cheaper than public transit—he left out crucial details like production timelines and regulatory approvals. 

These missing pieces have only fueled skepticism, with former Waymo CEO John Krafcik commenting that the Cybercab looked “more playful than serious,” and raised concerns about accessibility for older passengers or those with disabilities.

While Musk has hinted that the robotaxi business could skyrocket Tesla’s valuation to $5 trillion, analysts are urging caution. 

Sam Fiorani from AutoForecast Solutions points out that two-seaters, while proposed for decades, haven’t taken off as commuter vehicles. Investors, like Blake Anderson of Carson Group, are similarly wary. If the Cybercab is intended to be a mass-market vehicle, the two-seat configuration doesn’t quite add up.As Tesla pivots away from building smaller, lower-cost EVs to focus on autonomy, the Cybercab will be crucial in determining the company’s success in this burgeoning market. But whether it can truly meet consumer needs remains to be seen.

George Ndole
George Ndole
George is an experienced IT and multimedia professional with a passion for teaching and problem-solving. George leverages his keen eye for innovation to create practical solutions and share valuable knowledge through writing and collaboration in various projects. Dedicated to excellence and creativity, he continuously makes a positive impact in the tech industry.

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