By: Rachael Tan

Tesla says robot taxis will power the company stock’s growth, but Musk has not clarified when this service will be ready and safe for use.

As Tesla’s sales slowly start to decrease, Elon Musk proposes new ways for his company to expand. He believes that Tesla is more than selling and producing cars, and claims its future lies in the exciting developing world of AI.

According to Musk, Tesla’s main AI-based businesses will soon be driverless taxis, or robotaxis. These cars can operate in pretty much any weather or condition. Tesla is very close to perfecting these vehicles which will soon gain approval to join roads.

Mr. Musk’s vision is not limited to cars that drive themselves. He has also proposed a new idea, in which individuals can rent their Teslas to be robotaxis while they are sleeping or at work to make a little extra money.

The robotaxi will potentially increase Tesla’s stock market valuation to trillions of dollars, considering it is currently about $740 billion, said Musk.

However, his idea would require major advances in technology and in the way people viewed cars. Driverless taxi companies like Waymo and Cruise raised questions about whether such ideas will be profitable and how much money Tesla will make.

Competition will battle with Tesla’s new technology, including Waymo, Uber, Lyft, and Amazon’s self-driving business, Zoox. Carmakers are also pursuing self-driving, along with Chinese tech and auto companies like Baidu and BYD.

“It’s a super competitive business that’s barely profitable,” said Ross Gerber, chief executive of Gerber Kawasaki Wealth and Investment Management, which owns Tesla and Uber stock.

Christopher Robinson, a senior director at Lux Research who has studied robotaxis noted that robotaxis, while eliminating drivers, would require plenty of human labor even without drivers. Cars will need to be maintained, cleaned, and repaired if needed.

“It’s a slightly better taxi,” Mr. Robinson said. “I don’t think it’s as disruptive as people think it is.”