Tag: self-driving technology

  • Uber and WeRide Launch First International Robotaxi Service in Abu Dhabi

    Uber and WeRide Launch First International Robotaxi Service in Abu Dhabi

    Uber, the global ride-hailing company, has partnered with Chinese autonomous vehicle technology firm WeRide to introduce a commercial robotaxi service in Abu Dhabi. 

    This is Uber’s first autonomous vehicle initiative outside the United States, driving its expansion into self-driving technology.

    The initial phase of the service will operate across locations including Saadiyat Island, Yas Island, and routes to and from Zayed International Airport. 

    Plans are already in place for wider coverage in the future. Each vehicle in this pilot stage will have a human safety operator to oversee operations, with a fully driverless rollout expected by late 2025.

    With this collaboration, Uber is forming partnerships with autonomous vehicle innovators. The company has previously partnered with organisations such as Wayve, Serve Robotics, Aurora Innovation, and Waabi to enhance its presence in sectors like ride-hailing, delivery, and freight. 

    Nonetheless, investors are concerned about Uber’s ability to compete with companies directly developing autonomous technology, such as Waymo and Tesla.

    Last week, Uber’s stock dropped to nearly 10% following Waymo’s announcement of its upcoming robotaxi service in Miami. 

    Analysts believe that while there are disruptions from autonomous vehicles that remain years away, companies like Uber could act as platforms that connect riders to these services.

    The Abu Dhabi project will also involve collaboration with Tawasul Transport, a local operator tasked with managing the robotaxi fleet. Neither Uber nor WeRide disclosed the number of vehicles in the initial rollout, but both companies noted that the partnership is designed for gradual scaling.

    WeRide, which was recently listed on the Nasdaq, is scaling fast on autonomous mobility. The partnership with Uber adds momentum to its drive while aligning with Abu Dhabi’s vision of integrating advanced technologies into its transportation infrastructure.

    Loading

  • Tesla Profit Margins Hit 5-Year Low, Elon Musk Bets on Self-Driving Future

    Tesla Profit Margins Hit 5-Year Low, Elon Musk Bets on Self-Driving Future

    Tesla is set to report its lowest profit margins in over five years for the second quarter, due to the impact of aggressive pricing strategies and incentives to boost sales. 

    CEO Elon Musk is anticipated to focus on the company’s future in self-driving technology and robotaxi services to differentiate Tesla from its competitors and drive investor enthusiasm.

    Over the past two years, Tesla has implemented various discounts, price cuts, and financing incentives to clear inventory and maintain sales momentum. These measures, however, have put pressure on the company’s margins. 

    In April, Tesla announced a workforce reduction, cutting 10% of its global staff as part of its cost-management efforts.

    The upcoming earnings report is expected to reveal a decline in Tesla’s automotive gross margin, excluding regulatory credits, to approximately 16.27% for the April-June period. 

    This would mark the lowest margin since early 2019, continuing a downward trend from 16.36% in the first quarter of this year and 18.14% in the same period last year.

    Per Reuters, it’s been suggested that the financial impact of Tesla’s discounted financing offers will be felt over time, gradually affecting margins throughout the loan periods. 

    Reports also reveal predictions that margins could stabilise by the end of the year and begin to recover in 2025, coinciding with the production ramp-up of the Cybertruck.

    Elon Musk had planned to unveil Tesla’s robotaxi on August 8 but recently disclosed a delay until October to incorporate design changes. 

    The robotaxi, a huge innovation, could enhance Tesla’s market position if it succeeds in overcoming technical and regulatory challenges.

    Despite competition from companies like BYD in China, Tesla’s extensive fleet of vehicles that can potentially be converted to robotaxis gives it a competitive edge in the U.S. market. 

    However, experts caution that fully autonomous vehicles may still be years away from gaining regulatory approval.

    Investors are keenly awaiting details on Tesla’s self-driving technology strategy. Some believe Tesla’s Full Self-Driving (FSD) system could eventually be licensed to other manufacturers, although regulatory and technical hurdles remain significant.

    In April, Tesla announced its focus on introducing new models by early 2025 using existing platforms and production lines. This aims to facilitate development and reduce costs.

    Tesla’s delivery numbers for the second quarter exceeded analyst expectations, although they were 5% lower than the previous year. The company needs to deliver nearly one million vehicles in the second half of the year to match its 2023 record of 1.81 million vehicles. 

    Analysts predict modest delivery growth for the full year and anticipate a 15% increase in 2025.

    Loading

Translate »