Analysts at HSBC express skepticism about the profitability of Tesla's autonomous ride-hailing service. They highlight various overlooked costs tied to driverless taxis, including parking, charging, cleaning fees, and remote operators, estimating it may take 7-8 years for the service to break even. Additionally, they note that Tesla has yet to successfully implement self-driving technology, with CEO Elon Musk's promises to achieve this consistently falling short since 2014. Regulatory hurdles and hardware upgrades present further challenges that may delay profitability for the company.
When we factor in these costs, we believe robotaxis won't be break-even on a cash flow basis until 7-8 years after launch.
Even without factoring in additional costs, Musk's EV maker has struggled to realize self-driving. The mercurial CEO has infamously promised that Teslas will drive themselves 'next year' - every year since 2014.
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