Tesla chief executive Elon Musk has outlined plans for the robotaxi. Reuters
Tesla chief executive Elon Musk has outlined plans for the robotaxi. Reuters
Tesla chief executive Elon Musk has outlined plans for the robotaxi. Reuters
Tesla chief executive Elon Musk has outlined plans for the robotaxi. Reuters

Tesla robotaxi will offer services similar to Uber and Airbnb, Elon Musk says


Ian Oxborrow
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Tesla's robotaxi will be used as a service similar to Uber and Airbnb, according to the electric car company's chief executive Elon Musk.

The robotaxi, which hasn't been seen as Tesla has yet to release any images, is expected to begin volume production in 2024.

Mr Musk has described it as an self-driving vehicle without a steering wheel or pedals.

Speaking at Tesla's annual stockholder meeting, he said the new model would offer its owners an opportunity to rent out their vehicles based on how often they needed to use it.

“There are parking lots full of cars everywhere because cars need a driver and so, most of the time they are doing nothing,” he said.

“Typically, a passenger car is going to have 12 hours a week of usage. If it is autonomous, maybe it could get to 50 or 60 hours of usage.

“The interesting thing is the car still costs the same. So, in that scenario, at least for some period of time, the gross margin for an autonomous car boggles the mind,” he said.

  • Tesla chief executive Elon Musk speaks during the opening day of the Tesla Gigafactory in Gruenheide, Germany. EPA
    Tesla chief executive Elon Musk speaks during the opening day of the Tesla Gigafactory in Gruenheide, Germany. EPA
  • Musk speaks next to German Chancellor Olaf Scholz and the prime minister of Brandenburg state, Dietmar Woidke, during the opening ceremony. AFP
    Musk speaks next to German Chancellor Olaf Scholz and the prime minister of Brandenburg state, Dietmar Woidke, during the opening ceremony. AFP
  • The Tesla chief, right, was cheered as he oversaw the handover of the car maker's first German-made cars at the Gruenheide plant. EPA
    The Tesla chief, right, was cheered as he oversaw the handover of the car maker's first German-made cars at the Gruenheide plant. EPA
  • Musk described the opening as "another step in the direction of a sustainable future". EPA
    Musk described the opening as "another step in the direction of a sustainable future". EPA
  • Tesla is likely to launch a test version of its new "full self-driving" software in Europe, possibly next year, the chief executive said. EPA
    Tesla is likely to launch a test version of its new "full self-driving" software in Europe, possibly next year, the chief executive said. EPA
  • Musk dances as he hands over the first Teslas from the new factory. Getty Images
    Musk dances as he hands over the first Teslas from the new factory. Getty Images
  • Musk said battery production will be a "challenge" next year and a "limiting factor" in the coming years. Reuters
    Musk said battery production will be a "challenge" next year and a "limiting factor" in the coming years. Reuters
  • Tesla cars are parked at the site of the new Tesla Gigafactory in Gruenheide, Germany. Reuters
    Tesla cars are parked at the site of the new Tesla Gigafactory in Gruenheide, Germany. Reuters
  • Tesla was handing over the first Model Y cars made at its €5 billion Gruenheide plant to clients on March 22, the company said. Getty Images
    Tesla was handing over the first Model Y cars made at its €5 billion Gruenheide plant to clients on March 22, the company said. Getty Images
  • The new Tesla Gigafactory is the company's first European production centre. Getty Images
    The new Tesla Gigafactory is the company's first European production centre. Getty Images
  • Newly completed Tesla Model Y electric cars parked at the site near Gruenheide. Getty Images
    Newly completed Tesla Model Y electric cars parked at the site near Gruenheide. Getty Images
  • The new factory is the largest investment in a German car factory in recent history. Getty Images
    The new factory is the largest investment in a German car factory in recent history. Getty Images
  • A road sign reading 'water protection area' next to the Tesla logo at the site of the Tesla factory. EPA
    A road sign reading 'water protection area' next to the Tesla logo at the site of the Tesla factory. EPA
  • A road sign reading 'Tesla Street' at the new plant. EPA
    A road sign reading 'Tesla Street' at the new plant. EPA
  • A building under construction at the Tesla factory. EPA
    A building under construction at the Tesla factory. EPA
  • At full capacity, the factory will produce 500,000 cars annually. EPA
    At full capacity, the factory will produce 500,000 cars annually. EPA
  • Tesla plans to hire 12,000 workers at the plant. Bloomberg
    Tesla plans to hire 12,000 workers at the plant. Bloomberg

Having a self-driving vehicle will enable owners to also leverage its usage when they don't require it, Mr Musk said.

“In terms of how the car would be operated, you would have the option of owning a car and just using it occasionally when you need it — Auto-Uber or something like that, and then the owner of the car might decide they want to use the car or add or subtract it from the fleet. It would end up being a combination of Airbnb and Uber, or something like that,” he said.

Tesla's full self-driving programme is currently at the beta stage. More than 100,000 drivers in North America have access to the system, which requires the driver to remain vigilant and ready to take control.

The system has drawn scrutiny from regulators after a numbers of crashes were alleged to have occurred under autopilot.

Since 2016, the US National Highway Traffic Safety Administration has sent teams to 39 crashes in which self-driving systems were suspected of being in use, according to agency documents.

Of those, 30 involved Teslas, including crashes that caused 19 deaths.

Mr Musk said the proposed robotaxi service would not be linked to a specific city or location.

“Some states and cities will provide regulatory approvals quicker than others. We are aiming for a general solution,” he said.

“If you created a randomly generated alternate Earth, our system would still work.”

Mr Musk has said in the past that he saw the robotaxi as a potentially massive driver of growth for Tesla, and that the aim is for it to achieve the lowest fully considered cost per kilometre.

The Tesla Cybertruck is also set to go into production next year, but will be more costly than originally planned amid inflationary pressures.

  • People take pictures of the newly unveiled Cybertruck in 2019. The vehicle's release to the market in 2021 was delayed by at least two years. AFP
    People take pictures of the newly unveiled Cybertruck in 2019. The vehicle's release to the market in 2021 was delayed by at least two years. AFP
  • The Cybertruck was originally priced at $39,900 in 2019 - but inflationary prices have pushed other Tesla vehicles up in cost. AFP
    The Cybertruck was originally priced at $39,900 in 2019 - but inflationary prices have pushed other Tesla vehicles up in cost. AFP
  • Mr Musk stands in front of Cybertruck, after a metal ball was thrown at the windows to show how tough they are. Tesla / Reuters
    Mr Musk stands in front of Cybertruck, after a metal ball was thrown at the windows to show how tough they are. Tesla / Reuters
  • Mr Musk discusses vehicle dimensions in front of the Cybertruck. AFP
    Mr Musk discusses vehicle dimensions in front of the Cybertruck. AFP
  • The Tesla Cybertruck is unveiled at Tesla's design studio. AP
    The Tesla Cybertruck is unveiled at Tesla's design studio. AP
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Need to know

When: October 17 until November 10

Cost: Entry is free but some events require prior registration

Where: Various locations including National Theatre (Abu Dhabi), Abu Dhabi Cultural Center, Zayed University Promenade, Beach Rotana (Abu Dhabi), Vox Cinemas at Yas Mall, Sharjah Youth Center

What: The Korea Festival will feature art exhibitions, a B-boy dance show, a mini K-pop concert, traditional dance and music performances, food tastings, a beauty seminar, and more.

For more information: www.koreafestivaluae.com

List of alleged parties

 

May 12, 2020: PM and his wife Carrie attend 'work meeting' with at least 17 staff 

May 20, 2020: They attend 'bring your own booze party'

Nov 27, 2020: PM gives speech at leaving party for his staff 

Dec 10, 2020: Staff party held by then-education secretary Gavin Williamson 

Dec 13, 2020: PM and his wife throw a party

Dec 14, 2020: London mayoral candidate Shaun Bailey holds staff event at Conservative Party headquarters 

Dec 15, 2020: PM takes part in a staff quiz 

Dec 18, 2020: Downing Street Christmas party 

Zidane's managerial achievements

La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017

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Fifa Club World Cup:

When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid

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War and the virus

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: August 15, 2022, 6:35 AM