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Tesla launches Cybercab service in Austin

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Tesla ( TSLA ) has launched its new driverless Cybercab at an event last night, rolling out the new autonomous vehicle as part of its robotaxi service in Austin, Texas, starting Friday night.

Morning Brief Host Julie Hyman is joined by Yahoo Finance Breaking Business News Reporter Jake Conley and Interactive Brokers Chief Strategist Steve Sosnick to discuss the latest autonomous addition to Tesla's lineup.

00:00 Speaker A

The Tesla Cyber cab event was yesterday, so it rolled out its new cyber cab that doesn't have a steering wheel, but it was a closed event, it was not a public event. Apparently, you'll be able to book uh a cyber cab in Austin as of today.

00:15 Speaker C

Public rides starting tonight.

00:17 Speaker A

Tonight. Okay. So we'll see, we'll see if that actually happens. It's unclear how they're going to overcome the regulatory hurdles because

00:26 Steve

which are steep.

00:27 Speaker A

in most places they're supposed to have a steering wheel.

00:29 Steve

Have they still have to.

00:30 Speaker A

And the market's kind of underwhelmed here. The stock has been trading off.

00:33 Steve

Yeah.

00:34 Speaker A

You know, I know Steve, it's like enormously popular on the Interactive Brokers platform. It is of course on Yahoo Finance also. Let maybe less so now that SpaceX is available.

00:46 Steve

Yeah, they they've they've they've split the attention. Yeah.

00:48 Speaker C

Right.

00:49 Speaker A

Yeah. Exactly. You know, and the diehards of course are going to be excited about this. But it's but it's interesting to me how little atten I mean, yes, it's gotten attention, but it's like at one time this would have been the only thing we were talking about. And we're not in that position anymore.

01:05 Steve

The stock did have a a a little bit of an anticipatory rally. Nothing.

01:08 Speaker A

Yes.

01:09 Steve

So it it did it did have, you know, is is this going to turn out to be, you know, sort of a classic buy the rumor sell the news? We'll we'll find out. Um and yeah, you know, the the the the Musk attention is split now then between SpaceX and and and Tesla and you know, for for lack of a better way of putting it, Tesla's an older story. Yeah, there's all the whizbang stuff, robotics, cybercabs, whatever. But, you know, how does that compare with Mars and an an in an infinite addressable market?

01:40 Speaker A

Well, and it's not even the first mover in this, right? You have your Waymos, you have your Zoox, you have, you know, there's other stuff that is on the road now.

01:43 Steve

Yes, you have Waymo.

01:44 Speaker C

That's right.

01:46 Speaker C

And who have real scale already. Waymo's all over the place. Tesla's got to play catchup.

01:48 Steve

Yes, exactly.

01:51 Speaker A

Yes. And you have to wonder too if this stock is to some extent dead money unless and until SpaceX buys it.

01:58 Speaker C

That's right.

01:59 Speaker A

Which I guess like what's the next catalyst for? Is it is it uh what's the robot called? Optimus?

02:05 Speaker C

Oh, Optimus. Yeah, yeah, yeah. I mean, clearly Musk would love to combine the companies.

02:06 Steve

Oh yeah. No.

02:06 Speaker A

I don't know.

02:10 Speaker A

Right.

02:10 Speaker C

And there's an argument it could be good for shareholders. Consolidate, consolidate his focus, consolidate the companies. It also would give him an enormous amount of control over a huge entity.

02:24 Steve

That's the key. That's the key is the super voting.

02:26 Speaker C

What, 80% of SpaceX he owns right now?

02:28 Steve

He doesn't have, yeah, he doesn't he doesn't have super well, it's he could he doesn't have super voting in Tesla. He does have it in SpaceX. So if he buys Tesla, then he gets super voting on both.

02:30 Speaker C

Right now.

02:37 Speaker C

That's right.

02:39 Speaker C

Then he's got it.

02:41 Speaker A

And did you guys see they are trying to um sell people on buying fleets of Cybercabs? Like you too could be a you know, an AV magnet and and own your own fleet and send it out into the cities of America to drive people around.

02:51 Speaker C

Oh.

02:52 Steve

Mmm.

02:55 Speaker C

I mean, talk about a regulatory problem. Come on.

03:00 Speaker A

Yeah. Yeah.

03:00 Steve

That that but that's been the talk for quite a while is, right? Like, you know, you can you know, you can you can use this for your own use and then when you're, you know, when it's sitting in your office you know, in your office parking lot or at home in your at home on your driveway, send it out there and let it earn money for you.

03:10 Speaker A

Yeah, yeah.

03:13 Speaker C

Yes.

03:18 Speaker A

It probably will work eventually. It just doesn't feel like we're there

03:22 Speaker C

at this point.

03:22 Speaker A

at this moment.

03:23 Speaker C

And if you're going to do it and get around regulation, now's the time to do it. Do it under this administration.

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