Tesla, an American car manufacturer, is set to unveil its first self-driving taxi on August 8. The announcement was made by Tesla CEO Elon Musk on social media platform X. The news caused Tesla’s shares to rise by 6 percent in after-hours trading on the New York Stock Exchange.
Musk has been a vocal proponent of Tesla’s technology in the realm of self-driving electric cars and has suggested the concept of owners using their self-driving vehicles as taxis when not in use. However, the development of the robotaxi has faced obstacles, including concerns about safety from both authorities and the public.
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Earlier in the week, Tesla reported disappointing sales results for the first quarter of the year, attributing the underperformance to a sluggish electric car market in the United States and facing stiff competition from local manufacturers in China, such as BYD. Shares of Tesla took a hit when reports emerged that the company had halted plans for a cheaper electric car, but Musk denied the claims and the stock value rebounded.
