Tesla has launched the much-anticipated Cybercab at a high-profile event in Los Angeles overnight, with CEO Elon Musk saying drivers would be able to make passive income from the new developments.

Streaming live from the Warner Bros studio lot in Los Angeles, California, Tesla founder and CEO Elon Musk arrived in a Cybercab – an autonomous robotaxi.


He confirmed that the Cybercab would go into production in 2026 and cost less than $30,000 (£22,985), with the cars marking a shift for Tesla moving to low-priced, mass-market vehicles.

The robotaxi has two gull-wing doors and no steering wheel or pedals, with Musk praising the developments being made behind the scenes at the electric vehicle giant.

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The Tesla Cybercab

The Tesla Cybercab is expected to cost less than £23,000

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He added that the operating cost would be 20 cents (15p) per mile over time, with charging being inductive, removing the necessity of plugs.

The “We, Robot” event saw Musk claim that the autonomous electric vehicle would be 10 to 20 times safer than human-driven vehicles, with plans to launch these vehicles in Texas and California next year.

Musk said: “The autonomous future is here. We have 50 fully autonomous cars here tonight. You’ll see model Ys and the Cybercab. All driverless.”

This follows years of delays to the Tesla Robotaxi project, which Musk originally pledged during Tesla Autonomy Day in April 2019.

The Tesla Cybercab

Elon Musk arrived at the event in a Tesla Cybercab

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He suggested that the net present value of a single Robotaxi would be around $200,000 (£153,226), before claiming that there would be one million robotaxis on the road within a matter of years.

The announcement was initially delayed after a member of the audience suffered a medical emergency, as confirmed by Musk on his social media platform X.

Musk also showed off the Robovan, which he described as a “futuristic art deco bus”. The large minivan can hold up to 20 people or be used to transport goods.

The billionaire CEO added: “The Robovan is what’s going to solve for high density. So if you want to take a sports team somewhere, or you’re looking to really get the cost of travel down to, I don’t know, 5-10, cents a mile, then you can use the Robovan.”

The Tesla Robovan

The Tesla Robovan can carry up to 20 people

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The Robovan is expected to be used as part of the Tesla Network, an autonomous ride-hailing service that will make use of the brand’s self-driving cars. It is thought this will also incorporate people’s personally owned vehicles.

Attendees of the event were also given a further glimpse of the Optimus humanoid robot, with Musk highlighting the potential benefits of the future of the technology.

Videos showed the Optimus robots walking in a line past attendees, followed by a video depicting the humanoid performing tasks like cleaning countertops, handing out drinks and collecting shopping.

The Optimus humanoid robot has been described as “your own personal R2D2 / C3PO, but better”, with the official Tesla account claiming it will transform physical labour in industrial settings.

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The Tesla Optimus humanoid robot has been promised by Musk since 2019

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“This will be the biggest product ever, of any kind. Because, I think every one of the eight billion people on earth is going to want to their Optimus buddy and there’s going to be maybe two and then they’ll be producing products and services.

“I predict, provided we address risks of digital superintelligence, 80 per cent probability of good, let’s look on the bright side, the costs of products and services will decline dramatically. The Optimus robots will walk among you.”

Speaking earlier this year, Musk confirmed his plan to create a humanoid robot to reach volume production during manufacturing.