Shift: A podcast about mobility As Tesla readies for launch, Alex Roy inspects the economics behind the robotaxi business model
Jun 15, 2025
Join Alex Roy, a venture-capital partner and founder of the Human Driving Association, as he unpacks the economics of Tesla's upcoming robotaxi launch. He shares insights from his time in the robotaxi startup world and evaluates the business viability of self-driving technology. Delving into Tesla’s Full Self-Driving software, he contrasts it with Waymo's established presence and identifies four companies poised to lead the market. Roy navigates concerns over safety and public perception, shedding light on the future of automated transportation.
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Tesla's Robotaxi Launch Strategy
- Tesla will deploy a small fleet of robotaxis with heavy remote supervision to maintain the appearance of driverless operation.
- This deployment contrasts with Waymo's methodical approach, prioritizing cautious and reliable operations.
FSD's Current Limitations
- Tesla's Full Self Driving (FSD) is effective as a driver assist but not ready for full driverless operation.
- The system struggles in conditions like direct sun glare and moderate rain, causing involuntary disengagements.
Robotaxi Business Complexities
- Running a robotaxi business requires extensive operations including vehicle maintenance, cleaning, and managing deadheading costs.
- Fleet ownership versus contributed vehicles leads to fundamentally different operational challenges and cost structures.
