Tesla Has Stepped Back From Big Car Volumes in Europe to Bet on Robots and Robotaxis
Its Model Y still sells strongly in Europe.
WSJ What's News · Have U.S. Cars Lost Their Edge?Tesla has, "in a way," stepped back from trying to sell cars in large numbers in Europe to focus on humanoid robots and robotaxis, according to Stephen Wilmot, European autos reporter for the Journal, speaking from the Paris Motor Show.
Only three American brands are at the show, Ford, Tesla, and Lucid, Wilmot said. Ford has shrunk as it retreats from cheaper small cars for which it was well known. Lucid, a U.S. electric carmaker, is "obviously a very small player," he said.
Tesla had big success in Europe, and its Model Y is still "one of the most popular vehicles," Wilmot said. He said the future of automotive technology is "really up in the air," and that question is also on show in Paris.
Questions people ask
What humanoid robot is Tesla working on?
It is called Optimus, also known as Tesla Bot. It is a general purpose humanoid robot that Tesla is developing to handle factory work and, eventually, household tasks. Tesla has shown prototypes walking, picking up objects, and working in its factories.
What is a robotaxi?
A robotaxi is a car designed to operate as a driverless taxi, with no steering wheel input needed from a passenger. Tesla unveiled a two-seat version called the Cybercab in 2024. The idea is that owners could summon one through an app, or send their own Tesla out to earn money carrying riders.
Why would robots and robotaxis be more attractive than selling more cars?
Cars are a low margin business with intense price competition, especially from Chinese electric vehicle makers. Software driven taxi rides and robots could, in theory, bring higher and recurring revenue per vehicle. Tesla chief Elon Musk has argued that autonomy and robots will be worth far more than car sales alone.