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Home Technology

Slumping Car Sales? Tesla Shifts Focus to Cabs

March 4, 2025
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Slumping Car Sales? Tesla Shifts Focus to Cabs

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There has long been speculation that Tesla could enter into competition with platforms such as Uber and Waymo with its Cybertaxis. Now this step is on the horizon—and yet it raises a whole series of questions.

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Tesla is currently under pressure. Sales figures are plummeting worldwide, despite the fact that even markets that are considered difficult, such as Germany, have recently reported rising sales. The share price has also fallen.

One reason for the declining interest is certainly the comparatively slow updating of the models. Although the Model 3 recently received a comprehensive facelift, the Model S and Y have so far not been given a comprehensive refresh and new functions have only been delivered in the form of updates.

However, the image change is likely to be more serious. Because owner and CEO Elon Musk, as an advisor to US President Donald Trump, represents a sometimes right-wing view of the world, protests against the car manufacturer are growing in the USA and Europe. Demonstrations in front of Tesla dealerships are multiplying around the globe.

Back on the Road to Success with a Cab Service?

Tesla now appears to want to develop a new business model that has been the subject of speculation for some time. The manufacturer wants to use its vehicles as the basis for a cab service. In June, the first Cybercaps are due to chauffeur passengers in Austin, Texas, and at the end of last year, a permit for a charter service was applied for from the transportation authorities in the US state of California.

This would put Tesla in competition with platforms such as Uber or Lyft, as well as Waymo. The move has been the subject of speculation for some time, but the information provided by Bloomberg raises several questions.

It is not only unclear which vehicles Tesla intends to launch—the start of production of the cybercap was originally announced for next year. It is also not yet clear how Tesla cabs will move through the streets in the future. Elon Musk has already announced that his Tesla cabs will no longer need drivers.

However, a license for a classic ride-sharing service has been issued for California. In addition, drug tests and driver’s license checks were agreed with the authorities as part of the licensing process. Even a license for autonomous test operation of the cabs has not yet been applied for.

Recently, there have been repeated doubts about Tesla’s competence in autonomous driving. The manufacturer relies exclusively on optical cameras to record the traffic area. Its competitors also install lidar sensors, which rely on three-dimensional laser scanning to measure distances and speeds.

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