Robotaxi
Tesla Eyes Palo Alto for Cybercab Robotaxi Testing
Tesla is in preliminary discussions with Palo Alto officials to make the city a testing ground for its Cybercab Robotaxi service. The potential partnership comes as the city evaluates its public transportation options.
The autonomous rideshare service could offer a more affordable alternative to existing options, with Tesla CEO Elon Musk projecting costs as low as $0.30 per mile when operating at scale. City spokesperson Meghan Horrigan-Taylor confirmed initial talks with Tesla, noting that any future Robotaxi service would complement existing transportation options.
The timing coincides with financial challenges facing Palo Alto’s current rideshare program, Palo Alto Link. While the service has seen growing popularity—increasing from 2.7 to 3.1 users per service hour—it faces uncertainty as its primary funding source nears its end. The program, which launched in March 2023 after the city discontinued its free shuttle service, has been operating on a $2 million grant from the Santa Clara County Valley Transportation Authority.
Palo Alto Link, which offers more affordable rates than Uber Pool, has become an important part of the city’s transportation network. However, with the grant’s imminent expiration, the city must find new ways to fund the service or explore alternatives like Tesla’s proposed Robotaxi program.
The potential Tesla partnership represents part of Palo Alto’s broader strategy to provide affordable and convenient transportation options for its residents, while addressing the financial sustainability of its public transit services.