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Tesla is making significant strides to establish itself across various segments of the transportation industry. The electric vehicle manufacturer has outlined ambitious plans that include introducing a pickup truck and a semi-truck, and is now venturing into a driverless ride-sharing platform. During a recent TED talk, CEO Elon Musk claimed that riding in a Tesla could be more economical than using public transit.
Historically, Tesla has concentrated on personal vehicles, allowing drivers to operate their cars independently and at their leisure. However, this approach contributes to the heavy traffic already overwhelming urban roads. To address this, Tesla aims to reduce the reliance on human driving by advancing automation. Musk stated that the company anticipates fully autonomous driving technology could be ready for the market within the next two years.
Last October, Tesla hinted at its ride-sharing initiative, known as the “Tesla Network,” particularly in relation to the Model 3 and its driverless features incorporated in the entry-level model. During his TED talk, Musk further discussed this concept, emphasizing its potential to boost Tesla sales while promoting ride-sharing among car owners and riders. He underscored that providing affordable autonomous transportation does not hinge on universal vehicle ownership but rather on having a significant number of accessible self-driving vehicles available for public use, which could greatly reduce costs and offer a reliable means of transportation.
It would cost less than a bus ticket.
Elon Musk on cost of traveling on the Tesla Network
Musk also introduced this vision in the second part of his self-proclaimed “Master Plan,” highlighting the benefits of ride-sharing for vehicle owners:
“You will also be able to add your car to the Tesla shared fleet just by tapping a button on the Tesla phone app and have it generate income for you while you’re at work or on vacation, significantly offsetting and at times potentially exceeding the monthly loan or lease cost. This dramatically lowers the true cost of ownership to the point where almost anyone could own a Tesla. Since most cars are only in use by their owner for 5% to 10% of the day, the fundamental economic utility of a true self-driving car is likely to be several times that of a car which is not.”
Musk clarified that Tesla does not intend to directly compete with Uber. He was quoted saying, “It’s not Tesla versus Uber; it is the people versus Uber.”
However, this vision is still some time away from becoming a reality. For such a service to thrive, Tesla must first produce a large number of electric vehicles equipped with Level 5 automation. Additionally, the expansion of the Supercharger network needs to continue its rapid growth, which has recently gained momentum thanks to commitments from various manufacturers to enhance the charging infrastructure.
If Tesla succeeds in these endeavors and earns public confidence in its network as a viable low-cost transportation solution, it could indeed herald a new era in public transit.
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