Autonomous Vehicles: The Reality vs. The Vision: Xpeng and Tesla on Self-Driving Taxi Business Potential

Xpeng’s Gu predicts robotaxis will take at least five years to become a viable business

In Beijing, Xpeng Vice Chairman and Co-President Brian Gu stated that self-driving taxis are not expected to become a major business for at least five years. This contrasts with Elon Musk’s vision for Tesla as a company developing AI software for a robotaxi network.

Gu emphasized that while robotaxis have the potential to transform mobility if they become widespread, it will take more than five years to establish a full-fledged commercial operation. Xpeng, a China-based electric car startup with a presence in Europe, is currently not considering robotaxis in their sales planning.

Instead, the company is focusing on showcasing its driver-assist software as a key selling point. Gu mentioned that there will be extensive testing involved in this process, with an emphasis on demonstrating technological advancements and achieving milestones.

In China, tech companies like Baidu and Pony.ai have been granted permission to offer fares for fully driverless taxis in certain areas, including a suburb of Beijing and parts of Wuhan. These operating areas demonstrate the growing interest and progress in autonomous driving technologies in the country.

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