Tesla's Robotaxi Network Sees Decline in Paid Miles

Decline in Paid Miles Raises Concerns About Tesla's Autonomous Driving Ambitions

Tesla's budding "Robotaxi" network drove fewer miles for paying customers in the second quarter than it did in the first, according to a chart the company released on Wednesday. The quarter-over-quarter decline runs counter to Tesla's rhetoric and actions in the past year, which have staked much of the company's future on the idea of a massive, low-cost, cash-generating Robotaxi fleet.

• Despite expanded operations to six cities across Texas and Florida, Tesla's Robotaxi fleet of Model Y SUVs carrying paying passengers covered around 1.1 million miles in the first quarter, but only roughly 700,000 miles in the second quarter, a decline of about 36%.
• The decline in miles driven also comes as Tesla made a striking admission on a conference call Wednesday about its second-quarter results, with CEO Elon Musk saying the company needs to "accumulate driving data that is specific to the Cybercab" before it can put a lot of Robotaxis on the road.
• Musk's comment represents a break from claims the company has made for years about how its fleet of nearly 10 million customer cars has been silently collecting data in the background to train future robotaxis.

"Unlike, say, Model 3, Model Y, and our other vehicles where we've got a lot of vehicles on the road, millions of vehicles on the road, we don't have that for Cybercab. So we actually have to accumulate miles with Cybercabs that are retrofitted with steering wheels and acceleration and braking pedals, that kind of thing, to calibrate to the Cybercab chassis," Musk said.

• The admission has sparked concerns about the safety and reliability of Tesla's autonomous driving technology, with Musk saying that the company needs to be cautious about causing any accidents or harm to anyone.
• Musk also expressed concerns about the potential consequences of a regulatory crackdown, saying that even a single accident could lead to worldwide headline news and a clampdown on the company's activities.
• Tesla has reported 22 crashes to the National Highway Traffic Safety Administration in the year since it started trialing its Robotaxi service, including three crashes caused by its teleoperators moving the vehicles remotely.

"Although there are, I think, 30 to 40,000 automotive deaths per year in the United States alone, most of those do not generate any press, you don't really read about almost any of those. But if we injure even one person, it will be worldwide headline news, and regulators will immediately clamp down on our activities," Musk said.

• Meanwhile, Tesla's VP of AI, Ashok Elluswamy, boasted that Tesla's Robotaxis have had "zero notable incidents" while driving "more than 380,000 miles" without a safety operator onboard.
• However, the company has reported multiple instances of the cars hitting objects at low speeds, including curbs, utility poles, and a tow truck's bed.

Tesla's Robotaxi Network Faces Challenges Ahead

Tesla's robotaxi network faces significant challenges ahead, including the need to accumulate driving data specific to the Cybercab and prove the safety and reliability of its autonomous driving technology. The decline in paid miles driven in the second quarter is a stark reminder of the challenges facing the company's autonomous driving ambitions.