Is Tesla’s Future as a Car Company, or a Services Company?

Robotaxi concept idea

SugarDesign

With Tesla’s highly anticipated Robotaxi event just a couple of months away on 8/8, and the Robotaxi itself expected to come to market in 2025 or 2026, the question arises: what is Tesla’s future direction?

Will they continue to produce cutting-edge cars, or will they pivot toward a future where car ownership may no longer make sense?

Advantages of Robotaxi

One of Tesla’s upcoming focuses is bringing the price per mile for its Robotaxi network down to one that rivals bus tickets in major cities. Achieving this is quite an engineering and software feat and something that could still be years away.

But what about the Robotaxi itself? Will the advent of cheap, quickly available robotic taxis in cities and suburbs drive away car ownership in urbanized areas?

Tesla's robotaxi concept

Not a Tesla App

The potential for Tesla’s Robotaxi service to transform what we currently know as urban mobility is immense. By offering a cost-effective, convenient, and eco-friendly alternative to traditional car ownership, Tesla could change how people navigate cities. The allure of summoning a cheap, quick, and clean Robotaxi could reduce car ownership in cities, alleviate traffic congestion, reduce pollution, and ease parking issues in urban areas.

Moreover, if Tesla succeeds in reducing the price per mile to be competitive with, or even cheaper than mass transit options, the financial incentive to abandon car ownership could become even stronger. For many urbanites, the expenses associated with car ownership – such as insurance, parking, maintenance, charging or fueling costs, and the upfront purchase – can be prohibitive. Robotaxis could tip the balance by providing a seamless, on-demand transportation solution without these additional expenses.

Trust in Robotaxis

Tesla's robotaxi app

Not a Tesla App

However, there are significant obstacles between Tesla and its rosy Robotaxi future. Regulatory and societal hurdles loom ahead on the horizon. From a regulatory perspective, getting Robotaxi services approved will be a major challenge, as Tesla’s autonomous competitors have found themselves operating in regulatory grey zones. Governments will need to develop new frameworks to accommodate and oversee the deployment of autonomous vehicles, ensuring they meet safety and operational standards.

Societally, people will need to adapt to the idea of letting a computer drive them around. This transition can be challenging; even Tesla has found it difficult to convert those offered the FSD V12 trial into paying subscribers. Building trust in autonomous vehicle technology is crucial for the mass adoption of Robotaxi services. Outside of diehard fans and tech enthusiasts, the general public will need to be convinced of the safety and reliability of autonomous vehicles.

Ensuring that Tesla’s reputation for safe vehicles transfers to Robotaxi and FSD will be essential. Tesla must demonstrate the consistent safety and reliability of its Robotaxis to gain this trust.

Reducing Parking & Increasing Drop Off Zones

Moreover, the presence and availability of Robotaxis required to displace car ownership in urban centers will necessitate substantial infrastructure investment and acceptance by local governments. Tesla has already deployed an impressive Supercharger network, but the scale required for a fully operational Robotaxi network is much larger. This will mean developing parking garages and charging stations in urban centers, located in centralized areas to ensure ease of access for Robotaxis.

Additionally, integrating Robotaxis into the existing urban fabric will require collaboration with city planners and local authorities. They will need to address concerns about traffic flow, designated pickup and drop-off points, and the overall impact on public transportation systems. The seamless integration of Robotaxis into cityscapes will be critical for their success.

In short, while the promise of Tesla’s Robotaxi network is transformative, achieving this vision will require overcoming significant technical, regulatory, and societal challenges. If Tesla can navigate these obstacles, the benefits of a cost-effective, convenient, and eco-friendly transportation alternative could revolutionize urban mobility, reduce car ownership, and contribute to a more sustainable future.

The interior of Tesla's upcoming robotaxi, named Cybercab

Not a Tesla App

Tesla as a Car Company

Today, Tesla is still fundamentally a car company. It produces five different consumer vehicles: the Model S, Model 3, Model X, Model Y, and the Cybertruck. Of these, the Model Y achieved remarkable success in 2023, becoming the best-selling vehicle in the world, a significant milestone for an electric vehicle (EV). This success underscores Tesla’s engineering and design prowess, demonstrating its ability to create vehicles that appeal to everyday consumers.

Tesla’s focus on innovation and pushing the boundaries has set it apart in the automotive industry. The company revolutionized car manufacturing with its Gigacasting process, which allows large sections of the vehicle to be made from single pieces of cast aluminum. This innovation reduces complexity, increases production efficiency, and lowers costs. Tesla continues to innovate with its Unboxed vehicle assembly process, further streamlining production. Tesla’s vertically integrated approach is unique in the industry, minimizing reliance on third-party suppliers for vehicle subcomponents. This strategy enhances quality control and allows for faster implementation of new technologies. The Gigafactory model, established by Tesla, plays a crucial role in this approach. Located in the United States, China, Germany, and soon in Mexico, these Gigafactories are not just manufacturing hubs; they are centers of innovation. They serve as test beds for updated production processes and vehicle designs and are sites for subcomponent and battery assembly.

Beyond their manufacturing capabilities, each Tesla vehicle is an engineering marvel. Tesla’s cars consistently score some of the highest ratings in safety tests, reflecting the company’s commitment to building safe vehicles. Their performance is equally impressive; for example, the updated Model 3 Performance boasts an impressive 0-60 mph acceleration time. Tesla also continues to push the envelope with forthcoming models, such as the eagerly anticipated updated Roadster, which promises to deliver unparalleled performance.

Tesla has set industry standards in several key areas, including over-the-air updates, battery performance, acceleration, range, and user experience. The ability to receive software updates remotely keeps Tesla vehicles current and continuously enhances the user experience. The company leads in battery technology, offering some of the best range and performance metrics in the industry. Tesla’s vehicles are known for their impressive acceleration and long driving ranges, making them not only environmentally friendly but also highly practical and enjoyable to drive. Furthermore, Tesla excels in providing a superior user experience, both in the vehicle and during the shopping process, with minimalist, high-tech interiors and intuitive user interfaces.

Tesla Challenges

However, Tesla faces significant challenges as it continues to grow. The automotive industry is fiercely competitive, with both established automakers and new entrants ramping up their EV offerings. Companies like Ford, General Motors, Volkswagen, and Rivian are investing heavily in electric vehicle technology and infrastructure, intensifying the competition. There are also upcoming Chinese EV companies making strides in both battery tech and additionally, the global transition from internal combustion engine vehicles to electric vehicles is still in its early stages. Broader adoption of EVs depends on various factors, including government policies, the development of charging infrastructure, and changing consumer preferences. Tesla’s ability to influence and adapt to these factors will be crucial for its sustained growth as a car manufacturer. 

Wrapping it all together, while Tesla is exploring new avenues as a services company, its core identity as a car manufacturer remains robust. The company’s success with the Model Y and its innovative manufacturing practices highlight its strength in the automotive sector. As Tesla continues to push the boundaries of electric vehicle technology and manufacturing, it solidifies its position as a leader in the industry and sets the stage for future growth.

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Tesla Updates Energy App in Update 2025.8.3: Adds Reset and Distance Filter [VIDEO]

@EV3_Model3 on X

Tesla recently launched software update 2025.8.3, which included a bunch of “minor updates.” Nestled away in the release notes are a couple of interesting features - including some major changes to the Energy App.

We’re not quite sure we’d call these minor updates, so let’s take a bit of an exploration of the revitalized Energy App.

Select Distance in Energy App

The Energy App has received some new categorization features in the Consumption tab. You can once again limit the graph by distance. As part of the 2024 Holiday Update, Tesla redesigned the consumption tab and brought it to the new Model S and Model X for the first time. However, with the redesign, Tesla removed the ability to choose the distance shown in the graph, instead providing a static display of the last 200 miles (300km). 

The first part of the improved Energy App is bringing back this distance filter. You can now choose between showing the last 10, 100, or 200 miles (15, 150, or 300 km). This differs from the previous available distances of 5, 15 and 30 miles, but brings back the ability for the driver to choose a distance that may be more applicable to how they’re driving.

We’d love for Tesla to introduce custom distances by pinching and zooming the graph or simply add the ability to choose “This Drive Only” to the list of available distances.

Reset Energy App History

@EV3_Model3 on X

Sadly, the “Instant Range” button that was available in the Energy App before is still not available, but Tesla introduced a new feature that may be even better. You can now clear your driving history so that the graph only reflects your current driving style.

This is a little hidden, but if you tap the little info icon at the top near your average Wh/mi, you’ll now be presented with a dialog that lets you clear your history.

This could be useful if you’ve just come from some hard driving on a track or off-road, where energy consumption could be exaggerated. It could also be useful if you just started towing or a different type of driving that is drastically different from your current driving.

Other Changes

In addition, it looks like future predictions of the Energy app now take into account your driving history and apply that in addition to expected vehicle consumption, weather, altitude, and the multitude of other factors that your Tesla constantly takes into account while calculating your expected range.

While these are smaller improvements to the Energy app, they added some important functionality, as it helps users better understand their vehicle consumption and display data that is more applicable to the current driving style.

This is a great example of Tesla listening to its customers and bringing back features they had previously been removed. Check out the video below by akide on the updated Energy app in update 2025.8.3.

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Franz and Lars Discuss the Tesla Cybercab in New Interview

Munro Live

Sandy Munro once again had the opportunity to chat (video below) with Lars Moravy, Tesla’s Vice President of Vehicle Engineering, as well as Franz Von Holzhausen, Tesla’s Chief of Vehicle Design. This time, rather than focusing on the improvements to the refreshed Model Y and all the new engineering behind it, the focus was on Tesla’s autonomous ambitions.

In this case, the Cybercab and Robovan were the key highlights, with a distinct focus on the Cybercab. With that all said, let’s dig into all the fun new stuff. You can check out the entire video at the end of the article.

Cybercab Unboxed Process

The Cybercab will be the first of Tesla’s vehicles to use their new unboxed assembly process, which builds vehicles in parallel sections, and then brings them together all at once for final assembly. Traditionally, vehicles are assembled from the ground up, and sometimes even disassembled for parts of production to take place.

This innovative method involves using a big rear and front casting, brought together by a structural battery pack on the floor. The door rings are hot-stamped and laser-welded to form the side shell of the Cybercab, resulting in a very rigid structure that can also absorb crash impacts due to its unique manufacturing.

Paint-Free Panels

We’ve already talked about the Cybercab’s unique paint-free panels, but we’ve never heard until now exactly how Tesla intends to manufacture them. Tesla will inject colored PU plastic onto the backside of another plastic part (formed from various processes) and then ultrasonically weld that entire piece to an inner part.

That essentially combines multiple parts into one smooth piece that is easy to repair - because all you have to do is remove the entire panel - it just comes off as the interior fasteners are removed. There is no subframe holding it together - instead, the subframe is part of the panel.

The only area of the vehicle that will have any paint will be the hot-stamped door rings - which will be painted to improve corrosion resistance to protect the steel.

Aerodynamics

Aerodynamically, the Cybercab boasts the largest aero-cover-to-wheel ratio of any Tesla vehicle. This updated aero cover improves efficiency, even with the Cybercab’s relatively large tires—chosen to reduce rolling resistance. Interestingly, the impact of unsprung weight on efficiency is minimal compared to the benefits of improved rolling resistance and aerodynamics.

Another key to the aerodynamics is the teardrop shape of the Cybercab itself. With its low profile and smooth shape, it is extremely aerodynamically efficient. While neither Sandy nor Lars delved into drag coefficients, we expect it will likely be more efficient than the Model 3’s already fantastic Cd of 0.219.

Range and Battery Pack

Tesla currently has prototypes undergoing real-world testing at Giga Texas to evaluate range and efficiency. The goal is to ensure the vehicle can operate throughout an entire day in the city before returning to charge.

Tesla is targeting a battery pack under 50kWh, delivering close to 300 miles of real-world range—an impressive efficiency of around 166Wh/mi, even outperforming the Model 3’s lowest at 181Wh/mi.

When Does It Arrive?

So, with all that new knowledge - when does the Cybercab arrive? Well - the prototypes for the June Robotaxi network deployment in Austin are getting prepared now - but Tesla expects to begin production and sales sometime in the first half of 2026.

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