Tesla is in discussions with Palo Alto officials about testing its Cybercab for the company’s upcoming Robotaxi rideshare service. The electric vehicle manufacturer is exploring the possibility of making Palo Alto a testing site as it prepares to launch the service, which promises to offer more affordable transportation options.
Palo Alto currently operates a popular rideshare service known as Palo Alto Link, though it has been criticized for its cost. Tesla’s Robotaxi service, featuring the newly unveiled Cybercab, could offer a lower-cost alternative. According to Tesla CEO Elon Musk, the Cybercab may be able to provide rides at an estimated cost of $0.30 per mile at scale, potentially offering significant savings for passengers.
City officials, including spokesperson Meghan Horrigan-Taylor, have confirmed preliminary discussions with Tesla. If a deal is reached, Tesla’s Robotaxi service would complement existing services like Palo Alto Link, potentially enhancing the city’s transportation options.
Palo Alto Link, launched in March 2023, operates similarly to Uber Pool but at reduced rates. It replaced the now-defunct Palo Alto Shuttle service, which was discontinued due to declining revenues. While Palo Alto Link has gained popularity, with usage increasing from 2.7 to 3.1 users per service hour, the city faces funding challenges as the program’s initial $2 million grant from the Santa Clara County Valley Transportation Authority is nearing expiration.
The city’s talks with Tesla come as it reconsiders its public transportation strategies, aiming to provide more cost-effective and convenient services for its residents.
