Los Angeles. Tesla introduced its highly anticipated robotaxi, the "Cybercab," during an event at a Hollywood studio on Thursday night, although eager fans will have to wait until at least 2026 for availability.

CEO Elon Musk showcased the sleek, AI-driven vehicle at the Warner Bros. studio lot, noting that it is designed without steering wheels or pedals. He expressed confidence in Tesla's advancements in autonomous driving technology, which allows vehicles to operate without human intervention.

Tesla has been selling its "Full Self-Driving" software for nine years, but concerns regarding its reliability persist. “We’ll move from supervised Full Self-Driving to unsupervised Full Self-Driving, where you can fall asleep and wake up at your destination,” Musk declared. “It’s going to be a glorious future.”

Musk indicated that the Cybercabs are expected to retail for under $30,000, with a projected launch date of 2026, stating, "before 2027." The company plans to roll out Full Self-Driving technology for its popular Model 3 and Model Y vehicles in Texas and California next year.

Seth Goldstein, an equity strategist at Morningstar Research, commented, “If they’re going to eventually get to robotaxis, they first need to have success with the unsupervised FSD at the current lineup. Tonight's event showed that they're ready to take that step forward.”

However, investors remain anxious about the timeline for implementation, especially as competitors are already deploying similar technologies. Following the event, Tesla’s shares dropped nearly 7 percent in pre-market trading on Friday.

Waymo, Alphabet Inc.'s autonomous vehicle division, is already transporting passengers in driverless vehicles in Phoenix and other areas. General Motors' Cruise self-driving unit previously operated robotaxis in San Francisco until a crash last year involving one of its vehicles. Aurora Innovation also announced plans to begin freight operations with fully autonomous semis on Texas highways by the end of the year, while another company, Gatik, aims to do the same by 2025.

Bryant Walker Smith, a law professor at the University of South Carolina who studies automated vehicles, critiqued Tesla’s progress: “Tesla yet again claimed it is a year or two away from actual automated driving — just as the company has been claiming for a decade. Indeed, Tesla's whole event had a 2014 vibe, except that in 2014, there were no automated vehicles deployed on public roads. Now, there are real AVs carrying real people on real roads, but none of those vehicles are Teslas. Tonight did not change this reality; it only made the irony more glaring.”

During the event, Tesla had around 20 Cybercabs on display, allowing attendees to take rides on the studio lot but not on Los Angeles' public roads.

The presentation, titled "We, Robot," was live-streamed on Tesla's website and X. Musk also introduced a sleek, minibus-like vehicle that, like the Cybercab, will be self-driving and capable of carrying up to 20 passengers. Additionally, the company showcased several of its black and white Optimus humanoid robots, which demonstrated dance moves in a futuristic-looking gazebo.

Musk estimated the robots would cost between $28,000 and $30,000, claiming they could handle various tasks such as babysitting, lawn mowing, and grocery fetching. “Whatever you can think of, it will do,” he stated.

The unveiling of the Cybercab comes as Musk aims to reposition Tesla as a leader in artificial intelligence and robotics while facing challenges in selling its aging lineup of electric vehicles. According to TD Cowen analyst Jeff Osborne, Tesla's model lineup is struggling and is unlikely to see a refresh until late next year at the earliest.

Osborne also pointed out that the “politicization of Elon” is damaging the Tesla brand among Democratic buyers in the U.S., noting Musk's endorsement of Republican presidential candidate Donald Trump and his participation in a Pennsylvania rally alongside Trump last weekend.

Musk has long suggested that a fleet of robotaxis is on the horizon, allowing Tesla owners to earn money by having their cars transport passengers when not in use. However, he has acknowledged that previous predictions about the rollout of autonomous driving have been overly optimistic. In 2019, he promised a fleet of autonomous vehicles would be operational by the end of 2020.

The announcement occurs amidst ongoing investigations by U.S. safety regulators into the Full Self-Driving and Autopilot systems, which have raised concerns about the adequacy of measures ensuring human drivers remain attentive. Additionally, the U.S. National Highway Traffic Safety Administration (NHTSA) forced Tesla to recall Full Self-Driving in February due to issues allowing speeding and other traffic violations, especially near intersections. The company is addressing these concerns with an online software update.

Last April, a Tesla utilizing Full Self-Driving struck and killed a motorcyclist in Snohomish County, Washington. The driver reported using the system while distracted by his phone at the time of the incident. The NHTSA is currently evaluating details from Tesla and law enforcement regarding the fatal crash. The Justice Department is also seeking information from Tesla about Full Self-Driving, Autopilot, and other related matters.