On the Tesla Autonomy Day, Elon Musk had an unforgettable moment when he declared that by 2020, there will become at least one million Tesla “robotaxis” in service offering owners the possibility of earning the equivalent of $30,000 per year. Is this a realistic expectation? It doesn’t really matter. Here’s what the robotaxi can do for Tesla:
1. Instantly increases consideration from the Consumers
The potential of the robotaxi service might push people who are currently looking into the possibility of a Tesla beyond the limits. The early adopters adored Tesla due to the technology and “it” factor, and people who are devoted to Tesla remain loyal to their vehicles because Tesla has an impressive record of having one of the highest levels of loyalty in the world of automotive. But, Tesla needs to convince those who are unsure between an Tesla or a car from a premium automobile manufacturer (Lexus, Mercedes-Benz, Audi, BMW, Volvo) to choose an Tesla in preference to the others and the possibility of earning from robotaxis makes an argument that is convincing.
Some early responses are doubtful about Tesla’s plans to introduce a robotaxi which will give each customer the equivalent of $30,000 per year. While the founder of Tesla, Mr. Musk has admitted to not meeting his own targets and frequently falls far short of the grand pronouncements but he does land among the stars , even when his goal was the moon. Car buyers, who are generally informed prior to making a purchase and make think that Mr. Musk will miss his 2020 deadline and has overstated the income of $30,000 per year. However, should the Mr. Musk launches the robotaxi in 2022 and Tesla customers earn $10,000 per year through the service, it is still a substantial profit for Tesla owners, and might result in increased brand awareness.
2. It differentiates the Tesla Brand in the soon-to-be-crowded Tesla market
Tesla has been playing in the EV market with limited competition to date. Since the Jaguar I-PACE, Audi e-tron as well as the Porsche Taycan all arriving on the market with Tesla’s focus on autonomous cars as well as robotaxi will again make the brand stand out. For example Porsche’s announcement of the Taycan was geared towards the possibility of competing with Tesla in the sense that Porsche had been losing clients and was looking for the Taycan to be a Tesla killer, not the Tesla competitor. But the way that Tesla as well as Musk. Musk always seem to focus instead on their rivals they wanted to differentiate Tesla by attempting to be the first company to launch using level 5 autonomy in driving and revenue from the robotaxi. The Mr. Musk knows he and Tesla won’t be able to win people who want to own the Porsche and is instead trying to distinguish from the Tesla branding by targeting rational customers.
3. Transforms an Tesla into an investment
On the stream during the live stream, Musk was live on the stream. Musk alluded to the reality that vehicles are parked more often than they are utilized. This is the case. The most commonly used vehicle use is getting from parking lot A to parking space B, and then back in the parking space A later in the day. The result is that vehicles are remaining idle the majority of the time. The idea of letting owners earn money with the vehicle when they’re not really using it is an effective selling point, one that Tesla might require after it will lose its tax credit for electric vehicles at the end of December 2019. Tesla’s 2020 tagline for marketing, if it marketed its vehicles it could read ” Would you rather receive a $7,500 tax credit or $30,000 a year?” Mr. Musk essentially did this during investor’s day. He said “It’s financially insane to buy anything other than a Tesla.”
4. Enables Tesla to Launch a Ride-Hailing Service
If both the robotaxis and the Level 5 autonomous vehicles are brought to market and are successful, the Mr. Musk will be able to expand his portfolio of companies by introducing the concept of a ride-hailing business to rival Uber or Lyft. The primary difference between the Mr. Musk is that he doesn’t require drivers. It doesn’t matter if it’s an owned by Tesla or spin-off, it could generate additional revenue and also give the company the possibility of transferring its off-lease vehicles to a ride-hailing service, so long as the older Tesla vehicles are retrofitted with the latest technology. A ride-hailing service would permit Tesla to put new vehicles into its fleet, ensuring that factories are functioning at their maximum capacity and permitting Tesla to keep manufacturing costs down in the event of an ebb in demand for its products.
But Will It Launch in 2020?
Marcus Aurelius said we can predict the future if we examine the past. It’s likely to be the case that the Mr. Musk will accomplish all three of his goals before the 2020 end that is, one million robotaxis operating on the road and a revenue stream of $30,000 for the consumer as well as Level 5 autonomous vehicles. But the truth is that the truth is that Mr. Musk doesn’t need to reach his goal date in order to become a disruptive force and he only needs to get it done.
In the event that Mr. Musk’s robotaxi idea convinces customers to look into the Model 3, he was successful. His rants at Tesla’s Autonomy Day have garnered Tesla millions of dollars of marketing. Customers likely walked through their Tesla website to determine the price of the Tesla and some may already have one in their wish set. Increased awareness and consideration for driving is something that most auto firms spend millions of dollars to achieve. It doesn’t matter if the Mr. Musk hits his targets and more importantly, the public was convinced to think about buying an Tesla hoping to earn the equivalent of $30,000 per year in 2020.
Alex has been with us from the start, providing readers with the latest news and comprehensive reviews. Her extensive knowledge of the automotive industry makes her an invaluable asset to the team.