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Tesla unveils its robotaxi, plans to bring autonomous driving tech to other models in 2025

Austin-based Tesla showed off “Cybercab” vehicle this week. Photo via tesla.com

Texas-based Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, though fans of the electric vehicle maker will have to wait until at least 2026 before they are available.

CEO Elon Musk pulled up to a stage at the Warner Bros. studio lot in one of the company's “Cybercabs," telling the crowd that the sleek, AI-powered vehicles don't have steering wheels or pedals. He also expressed confidence in the progress the company has made on autonomous driving technology that makes it possible for vehicles to drive without human intervention.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

“We’ll move from supervised Full Self-Driving to unsupervised Full Self-Driving. where you can fall asleep and wake up at your destination,” he said. "It’s going to be a glorious future.”

Tesla expects the Cybercabs to cost under $30,000, Musk said. He estimated that the vehicles would become available in 2026, then added “before 2027.”

The company also expects to make the Full Self-Driving technology available on its popular Model 3 and Model Y vehicles in Texas and California next year.

“If they’re going to eventually get to robotaxis, they first need to have success with the unsupervised FSD at the current lineup,” said Seth Goldstein, equity strategist at Morningstar Research. “Tonight’s event showed that they're ready to take that step forward.”

When Tesla will actually take that step, however, has led to more than a little anxiety for investors who see other automakers deploying similar technology right now. Shares of Tesla Inc. tumbled 9% at the opening bell Friday.

Waymo, the autonomous vehicle unit of Alphabet Inc., is carrying passengers in vehicles without human safety drivers in Phoenix and other areas. General Motors’ Cruise self-driving unit had been running robotaxis in San Francisco until a crash last year involving one of its vehicles.

Also, Aurora Innovation said it will start hauling freight in fully autonomous semis on Texas freeways by year’s end. Another autonomous semi company, Gatik, plans to haul freight autonomously by the end of 2025.

“Tesla yet again claimed it is a year or two away from actual automated driving -- just as the company has been claiming for a decade. Indeed, Tesla’s whole event had a 2014 vibe, except that in 2014 there were no automated vehicles actually deployed on public roads,” Bryant Walker Smith, a University of South Carolina law professor who studies automated vehicles, told The Associated Press in an email. “Now there are real AVs carrying real people on real roads, but none of those vehicles are Teslas. Tonight did not change this reality; it only made the irony more glaring.”

Tesla had 20 or so Cybercabs on hand and offered event attendees the opportunity to take rides inside the movie studio lot — not on Los Angeles' roads.

At the presentation, which was dubbed “We, Robot” and was streamed live on Tesla’s website and X, Musk also revealed a sleek minibus-looking vehicle that, like the Cybercab, would be self-driving and can carry up to 20 passengers.

The company also trotted out several of its black and white Optimus humanoid robots, which walked a few feet from the attendees before showing off dance moves in a futuristic-looking gazebo.

Musk estimated that the robots would cost between $28,000-$30,000 and would be able to babysit, mow lawns, fetch groceries, among other tasks.

“Whatever you can think of, it will do,” he said.

The unveiling of the Cybercab comes as Musk tries to persuade investors that his company is more about artificial intelligence and robotics as it labors to sell its core products, an aging lineup of electric vehicles.

Tesla’s model lineup is struggling and isn’t likely to be refreshed until late next year at the earliest, TD Cowen analyst Jeff Osborne wrote in a research note last week.

Osborne also noted that, in TD Cowen’s view, the “politicization of Elon” is tarnishing the Tesla brand among Democrat buyers in the U.S.

Musk has endorsed Republican presidential candidate Donald Trump and has pushed many conservative causes. Last weekend he joined Trump at a Pennsylvania rally.

Musk has been saying for more than five years that a fleet of robotaxis is near, allowing Tesla owners to make money by having their cars carry passengers while they’re not in use by the owners. Musk said that Tesla owners will be able to put their cars into service on a company robotaxi network.

But he has acknowledged that past predictions for the use of autonomous driving proved too optimistic. In 2019, he promised the fleet of autonomous vehicles by the end of 2020.

The announcement comes as U.S. safety regulators are investigating Full Self Driving and Autopilot based on evidence that it has a weak system for making sure human drivers pay attention.

In addition, the U.S. National Highway Traffic Safety Administration forced Tesla to recall Full Self-Driving in February because it allowed speeding and violated other traffic laws, especially near intersections. Tesla was to fix the problems with an online software update.

Last April in Snohomish County, Washington, near Seattle, a Tesla using Full Self-Driving hit and killed a motorcyclist, authorities said. The Tesla driver told authorities that he was using the system while looking at his phone when the car rear-ended the motorcyclist. The motorcyclist was pronounced dead at the scene, authorities said.

NHTSA says it’s evaluating information on the fatal crash from Tesla and law enforcement officials.

The Justice Department also has sought information from Tesla about Full Self-Driving and Autopilot, as well as other items.

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A View From HETI

A new JLL report predicts that power will become the primary factor in selecting future data center sites, with renewables playing a major role. Photo courtesy JLL.

Renewable energy is evolving as the primary energy source for large data centers, according to a new report.

The 2026 Global Data Center Outlook from commercial real estate services giant JLL points out that the pivot toward big data centers being powered by renewable energy stems from rising electricity costs and tightening carbon reduction requirements. In the data center sector, renewable energy, such as solar and wind power, is expected to outcompete fossil fuels on cost, the report says.

The JLL forecast carries implications for the Houston area’s tech and renewable energy sectors.

As of December, Texas was home to 413 data centers, second only to Virginia at 665, according to Visual Capitalist. Dozens more data centers are in the pipeline, with many of the new facilities slated for the Houston, Austin, Dallas-Fort Worth and San Antonio areas.

Amid Texas’ data center boom, several Houston companies are making inroads in the renewable energy market for data centers. For example, Houston-based low-carbon energy supplier ENGIE North America agreed last May to supply up to 300 megawatts of wind power for a Cipher Mining data center in West Texas.

The JLL report says power, not location or cost, will become the primary factor in selecting sites for data centers due to multi-year waits for grid connections.

“Energy infrastructure has emerged as the critical bottleneck constraining expansion [of data centers],” the report says. “Grid limitations now threaten to curtail growth trajectories, making behind-the-meter generation and integrated battery storage solutions essential pathways for sustainable scaling.”

Behind-the-meter generation refers to onsite energy systems such as microgrids, solar panels and solar battery storage. The report predicts global solar capacity will expand by roughly 100 gigawatts between 2026 and 2030 to more than 10,000 gigawatts.

“Solar will account for nearly half of global renewable energy capacity in 2026, and despite its intermittent properties, solar will remain a key source of sustainable energy for the data center sector for years to come,” the report says.

Thanks to cost and sustainability benefits, solar-plus-storage will become a key element of energy strategies for data centers by 2030, according to the report.

“While some of this energy harvesting will be colocated with data center facilities, much of the energy infrastructure will be installed offsite,” the report says.

Other findings of the report include:

  • AI could represent half of data center workloads by 2030, up from a quarter in 2025.
  • The current five-year “supercycle” of data center infrastructure development may result in global investments of up to $3 trillion by 2030.
  • Nearly 100 gigawatts worth of new data centers will be added between 2026 and 2030, doubling global capacity.

“We’re witnessing the most significant transformation in data center infrastructure since the original cloud migration,” says Matt Landek, who leads JLL’s data center division. “The sheer scale of demand is extraordinary.”

Hyperscalers, which operate massive data centers, are allocating $1 trillion for data center spending between 2024 and 2026, Landek notes, “while supply constraints and four-year grid connection delays are creating a perfect storm that’s fundamentally reshaping how we approach development, energy sourcing, and market strategy.”

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