Tesla's Cybercab, a self-driving electric vehicle revealed at the "We, Robot" event on Oct. 11, boasts a futuristic design with butterfly doors and a compact, two-passenger cabin. Engineered without a steering wheel or pedals and utilizing inductive charging, this autonomous prototype aims for heightened safety and cost efficiency, targeting production by 2026. (Tesla)

Tesla’s recent unveiling of its Robotaxi prototype has generated some buzz, but the absence of critical details leaves room for competitors -- such as Hyundai Motor Group -- to potentially make up ground in the race toward autonomous vehicles. While Tesla remains a dominant force in electric vehicles and self-driving technology, its latest announcement raises as many questions as it does excitement.

At the Tesla event named "We, Robot," held at Warner Bros. Studios in Burbank, California on Oct. 11, Tesla CEO Elon Musk showcased the CyberCab, a sleek, minimalist two-door robotaxi designed to operate without a steering wheel or pedals. While Musk's promise of mass production by 2026 at a price point under $30,000 grabbed headlines, the absence of key details, such as how the vehicle’s autonomous systems would navigate complex urban environments or meet regulatory hurdles, left some fans and industry insiders underwhelmed.

Too early to write off Tesla

Still, industry watchers say it would be premature to dismiss Tesla’s vision outright. Tesla’s ambitions extend beyond building self-driving cars -- they aim to revolutionize urban transportation with a fleet of robotaxis that generate revenue even when idle. At the same time, these bold aspirations also underline the long road ahead for the entire industry in terms of achieving regulatory approval and resolving safety concerns.

An industry insider who works closely with Hyundai Motor Group commented on the unveiling, saying, “Tesla's robotaxi remains more of a concept on a roadmap, but even that poses a real threat to competitors who are still grappling with overcoming consumer hesitancy around electric vehicles, let alone introducing fully autonomous taxis.”

Hyundai-Waymo tie-up

Hyundai has been steadily building its own autonomous capabilities. Hyundai recently partnered with US-based self-driving technology company Waymo, an offshoot of Google, to develop autonomous taxis based on Hyundai's electric Ioniq 5 model. This collaboration is expected to place Waymo’s technology into Hyundai’s vehicles for deployment in Waymo One, Waymo’s commercial robotaxi service, by the end of 2025.

Announced Oct. 4, Hyundai and Waymo are teaming up to bring autonomous Ioniq 5 SUVs to the Waymo One fleet starting in 2025. (Hyundai Motor Group)

Although details about the interior and full capabilities of the Waymo Ioniq 5 remain sparse, the vehicle will still feature traditional controls like a steering wheel, setting it apart from Tesla’s CyberCab design, which eliminates them entirely. The presence of such controls suggests a more conservative approach by Hyundai, but one that may ultimately prove more practical as regulatory frameworks for autonomous vehicles evolve.

Hyundai has also been quietly testing its Level 4 autonomous driving technology -- a classification that requires no human intervention in specific conditions -- in limited areas around Seoul. However, broader commercialization remains a distant goal. Hyundai’s prior attempt to launch self-driving taxis in partnership with Kakao Mobility in South Korea’s bustling Gangnam district failed, underscoring the challenges in scaling such technologies beyond pilot programs.

Need for patient leadership

Despite the excitement surrounding autonomous vehicles, the global auto industry faces a stark reality: no company, not even tech-forward Tesla, has yet been able to bring fully self-driving cars to market in a commercially viable way. GM’s Cruise, one of the most advanced players in this space, has faced significant setbacks. A fatal accident involving one of its autonomous taxis -- after a human-driven car struck a pedestrian, who was then dragged by the driverless Cruise vehicle -- led to the suspension of its fleet in several US cities.

Following safety concerns raised by California regulators, General Motors' Cruise paused its driverless car operations nationwide on Oct. 26 last year. (General Motors)

"GM Cruise’s urgency to prove progress to investors and executives led to risky operations without human oversight, and it cost them dearly," said an official from 42dot, the self-driving mobility unit under Hyundai Motor Group. This incident highlighted the need for strong leadership and patience in the development of autonomous technology.

“Hyundai, under the direction of Executive Chair Chung Euisun, may be better positioned to take the steady approach necessary for long-term success.”

Waymo has been a quieter player but boasts a longer history. Starting as Google’s self-driving car project in 2009, Waymo now operates self-driving taxi services in several test markets across the US Using vehicles like the Jaguar I-Pace and the Chrysler Pacifica, Waymo has amassed considerable experience in autonomous driving, and its collaboration with Hyundai may be key to expanding its robotaxi services globally.

Tech is ready, liability is not

For all the progress made by companies like Tesla, Hyundai and Waymo, the leap from pilot projects to widespread commercialization of autonomous vehicles still faces formidable obstacles. Regulatory challenges, traffic safety concerns and liability issues remain major sticking points for the industry as a whole. In many cases, the technology is there, but companies remain hesitant to take on the legal risks associated with fully self-driving cars.

“It’s not that automakers like Hyundai, let alone Tesla, don’t have the technology,” said automotive analyst Lee Sang-hyun from BNK Securities, “but no one wants to take on the legal responsibility or take the public blame for accidents that will inevitably happen, which is why even Level 3 autonomous driving -- a step below full autonomy -- has yet to be widely commercialized.”