Musk expects volume production of new Tesla robotaxi by 2024 after record Q1 earnings

Tesla Inc. expects to reach volume production of a new robotaxi vehicle without a steering wheel or pedals by 2024, CEO Elon Musk said on the automaker's first-quarter earnings call Wednesday.

The goal of the model, which would use Tesla's still-incomplete Full Self-Driving software, is to reach the lowest cost per mile for a taxi-type vehicle, Musk said.

Tesla has expanded the beta, or test version, of Full Self-Driving to 100,000 owners and will further expand it this year, the company has said.

"I think that really will be a massive driver of Tesla growth," Musk said of the robotaxi model.

However, he declined to give more specifics when asked whether the vehicle would go on sale to the public or be used in a company-run transportation service.

"We don't want to jump the gun on an exciting product announcement yet," Musk said, saying there will likely be a product event next year to offer greater details.

Musk said Tesla's projections show that a future robotaxi ride would cost less than a subsidized public bus or subway ticket.

Musk first mentioned plans for the vehicle during the opening event for the company's Austin, Texas, factory this month. "There's going to be a dedicated robotaxi that's going to look quite futuristic," he said.

On Wednesday, Musk said he expected the automaker's sales volume to increase by its stated goal of 50 percent a year into the foreseeable future, and growth could hit 60 percent this year despite a recent weekslong shutdown at its Shanghai factory due to the coronavirus.

"We are already back up and running with the Shanghai factory," said Musk, who described the quarter as overall very difficult because of semiconductor shortages and rising costs.

Some parts suppliers have increased prices by 20 to 30 percent this year compared with last year, said Musk, who expects inflation to remain high through the rest of 2022.

Musk also justified Tesla's repeated price increases for its vehicles, saying that because the lag between ordering a model and receiving it is up to a year, future costs must be reflected.

In its earnings report after the market close Wednesday, Tesla said net income and revenue surged after the electric vehicle maker delivered record units at higher prices.

The company posted first-quarter net income of $3.32 billion, compared with a profit of $438 million a year earlier, according to Reuters. Revenue rose to $18.76 billion from $10.39 billion a year earlier.

Earnings per share and revenue exceeded Wall Street expectations. Tesla reported earnings per share of $2.86, while analysts expected $2.26. Revenue exceeded forecasts by about $1 billion.

Tesla has been an outlier since the pandemic began, posting record deliveries and earnings for several quarters as rivals wrestled with global supply chain snarls and production halts.

Reuters contributed to this report.