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How consumers view robotaxis ahead of Tesla’s ‘We, Robot’ event: study

Credit: u/boopitysmopp/Reddit

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Ahead of Tesla’s Robotaxi unveiling event on Thursday, one firm has released data suggesting that early consumer experience with driverless ride-hailing platforms has generally been positive.

On Tuesday, J.D. Power shared the results of its 2024 U.S. Robotaxi Experience study, which found that, on average, consumers ranked driverless ride-hailing experiences an 8.53 out of 10. In its second year, the study surveyed 3,773 respondents along with 773 consumers who lived in cities such as San Francisco, Los Angeles, Phoenix, Las Vegas, and Dallas, where robotaxi services are already available.

Perhaps unsurprisingly, consumer confidence in robotaxis was about substantially higher in those who had prior experience in one of the self-driving vehicles, landing at 76 percent, and well above the 20 percent for those who had not. Consumer confidence was also improved by public exposure to the technology, with 34 percent of those who had not ridden but had witnessed self-driving vehicles expressing some level of trust and acceptance.

Notably, these results suggest that sheer experience with robotaxi platforms — both riding inside them and seeing them on the street — tends to give consumers greater public trust in these driverless solutions. The results also come as the market for driverless ride-hailing continues to grow, as Tesla and other companies ready their commercial robotaxi offerings.

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The study featured five categories, including comfort and convenience, initiating rides, taking rides in the given vehicle, service availability and cost, as well as overall vehicle technology. Responses for the study were fielded in August.

The key findings also included that consumers regularly seek out safety features and easy access to authorities, such as the inclusion of an emergency button in robotaxis. Service area coverage and cost remain barriers for some consumers who haven’t tried the services out yet, with the vast majority of companies employing a mapping strategy to certain service areas.

“The robotaxi segment is still anyone’s game, given that most people are not familiar with robotaxi brands and haven’t formed a clear associative imagery,” said Kathleen Rizk, J.D. Power’s Senior Director of User Experience Benchmarking and Technology.

Other key findings include that consumers strongly value how well vehicles navigate traffic laws, and how well they perform when maneuvering regular traffic. In addition, 77 percent of rides said they would prefer a driverless robotaxi to a ride-share with a human driver when needing to have a private conversation.

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You can view J.D. Power’s full study results for the 2024 Robotaxi Experience Study on the firm’s website here.

Currently, driverless ride-hailing services and tests are operated by the Google-owned company Waymo, May Mobility, Zoox, and Motional. Meanwhile, General Motors (GM) subsidiary Cruise was forced to halt self-driving operations last fall after an accident with a pedestrian, though it’s currently aiming to relaunch services by the end of this year.

While Tesla offers its Full Self-Driving (FSD) Supervised to customers, it doesn’t currently have the software available to consumers as a driverless ride-hailing system. However, the company is widely expected to unveil a ride-hailing service during its “We, Robot” event on Thursday, and it has already teased a mobile app ride-hailing platform.

The company’s FSD Supervised, eventually expected to become Unsupervised as Tesla targets the cars becoming safer than human drivers, is also one of the only self-driving softwares out there that doesn’t utilize area mapping. For that reason, Tesla has touted its ability to scale FSD beyond mapped-out service areas, especially when paired with the ongoing training of its AI neural network through real-time driving footage.

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Apparent camouflaged Tesla Robotaxi prototype sighted at Warner Bros. Burbank

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla rolls out xAI’s Grok to vehicles across Europe

The initial rollout includes the United Kingdom, Ireland, Germany, Switzerland, Austria, Italy, France, Portugal, and Spain.

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Tesla is rolling out Grok to vehicles in Europe. The feature will initially launch in nine European territories.

In a post on X, the official Tesla Europe, Middle East & Africa account confirmed that Grok is coming to Teslas in Europe. The initial rollout includes the United Kingdom, Ireland, Germany, Switzerland, Austria, Italy, France, Portugal, and Spain, and additional markets are expected to be added later.

Grok allows drivers to ask questions using real-time information and interact hands-free while driving. According to Tesla’s support documentation, Grok can also initiate navigation commands, enabling users to search for destinations, discover points of interest, and adjust routes without touching the touchscreen, as per the feature’s official webpage.

The system offers selectable personalities, ranging from “Storyteller” to “Unhinged,” and is activated either through the App Launcher or by pressing and holding the steering wheel’s microphone button.

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Grok is currently available only on Model S, Model 3, Model X, Model Y, and Cybertruck vehicles equipped with an AMD infotainment processor. Vehicles must be running software version 2025.26 or later, with navigation command support requiring version 2025.44.25 or newer.

Drivers must also have Premium Connectivity or a stable Wi-Fi connection to use the feature. Tesla notes that Grok does not currently replace standard voice commands for vehicle controls such as climate or media adjustments.

The company has stated that Grok interactions are processed securely by xAI and are not linked to individual drivers or vehicles. Users do not need a Grok account or subscription to enable the feature at this time as well.

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Tesla ends Full Self-Driving purchase option in the U.S.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

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Credit: Tesla

Tesla has officially ended the option to purchase the Full Self-Driving suite outright, a move that was announced for the United States market in January by CEO Elon Musk.

The driver assistance suite is now exclusively available in the U.S. as a subscription, which is currently priced at $99 per month.

Tesla moved away from the outright purchase option in an effort to move more people to the subscription program, but there are concerns over its current price and the potential for it to rise.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

Although Tesla moved back the deadline in other countries, it has now taken effect in the U.S. on Sunday morning. Tesla updated its website to reflect this:

There are still some concerns regarding its price, as $99 per month is not where many consumers are hoping to see the subscription price stay.

Musk has said that as capabilities improve, the price will go up, but it seems unlikely that 10 million drivers will want to pay an extra $100 every month for the capability, even if it is extremely useful.

Instead, many owners and fans of the company are calling for Tesla to offer a different type of pricing platform. This includes a tiered-system that would let owners pick and choose the features they would want for varying prices, or even a daily, weekly, monthly, and annual pricing option, which would incentivize longer-term purchasing.

Although Musk and other Tesla are aware of FSD’s capabilities and state is is worth much more than its current price, there could be some merit in the idea of offering a price for Supervised FSD and another price for Unsupervised FSD when it becomes available.

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Musk bankers looking to trim xAI debt after SpaceX merger: report

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.

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Credit: SpaceX

Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.

The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.

SpaceX IPO is coming, CEO Elon Musk confirms

The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.

Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”

That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.

X merged with xAI last March, which brought the valuation to $45 billion, including the debt.

SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:

“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”

The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.

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