Elon Musk Declares Tesla Won’t Buy Uber but Will Launch Its Own Robotaxi Service Empowering Owners to Earn

In a decisive move that reshapes the future of ride-hailing and autonomous transportation, Tesla CEO Elon Musk firmly rejected any speculation about Tesla acquiring Uber, emphasizing that there is “no need” for the electric vehicle giant to buy the ubiquitous rideshare app. Instead, Musk laid out an ambitious vision for Tesla’s own robotaxi service, which promises to disrupt the existing mobility market by combining a Tesla-owned autonomous fleet with a new model that allows Tesla owners to earn money by adding their personal vehicles to the autonomous fleet.

Speaking in an exclusive interview with CNBC, Musk explained how Tesla’s approach differs fundamentally from current ride-hailing platforms. “We have millions of cars that will be able to operate autonomously,” Musk said.

He described a hybrid business model where the fleet is composed not only of Teslas owned and operated by the company but also of privately owned Teslas that their owners can add or remove from the fleet at will.

This model is reminiscent of Airbnb’s sharing economy platform, where owners rent out spare bedrooms; Tesla owners will similarly be able to rent out their cars for autonomous ride-hailing without needing to be behind the wheel.

This concept transforms Tesla owners from mere drivers into autonomous fleet operators, creating an additional revenue stream for millions of Tesla customers and accelerating the shift toward autonomous mobility. Musk’s vision could redefine what it means to own a car, turning idle vehicles into income-generating assets while increasing the availability of self-driving taxis.

Tesla’s announcement comes as the company prepares to launch its highly anticipated robotaxi service, initially rolling out in Austin, Texas, as previously reported by Business Insider. Musk confirmed these plans in the CNBC interview, revealing an initial small fleet deployment with a rapid scale-up strategy. “We'll start with probably 10 for a week, then increase it to 20, 30, 40,” he said. “It will probably be at 1,000 within a few months.”

This aggressive timeline demonstrates Tesla’s confidence in its Full Self-Driving (FSD) technology and its readiness to compete head-to-head with established ride-hailing services and autonomous vehicle platforms.

A key piece of Tesla’s autonomous strategy is the upcoming commercial release of FSD Unsupervised—a version of Tesla’s full self-driving software that requires no human driver behind the wheel. This marks a significant leap beyond Tesla’s current supervised Autopilot and FSD beta programs, which still rely on drivers to monitor the system.

The FSD Unsupervised software will underpin Tesla’s robotaxi fleet, enabling vehicles to operate fully autonomously, pick up and drop off passengers, and navigate urban environments safely without human intervention.

When asked if Tesla needed further improvements or technological breakthroughs before launching a large-scale robotaxi fleet, Musk was confident: “I don't think we're missing anything. Tesla has all the ingredients necessary to offer a vast self-driving fleet.” This assertion underlines Tesla’s belief that its AI-driven, camera-centric approach to autonomy is ready for prime time and can scale rapidly.

The decision to forgo purchasing Uber contrasts sharply with the strategies of other major ride-hailing companies. Uber and Lyft, once early pioneers in autonomous vehicle development, have largely abandoned in-house development of self-driving technology.

Instead, both companies have pivoted toward partnering with specialized autonomous vehicle firms to integrate robotaxis into their platforms.

For instance, Uber currently offers rides through Alphabet’s Waymo autonomous vehicles in select cities such as Phoenix, Austin, and Atlanta, showcasing a hybrid model where Uber acts as a booking platform but does not own or operate the autonomous fleet.

Lyft has similarly announced partnerships with companies including May Mobility, Mobileye, and Japan’s Marubeni, aiming to introduce autonomous vehicle services on its platform as early as summer 2025. These collaborations reflect a cautious industry approach, leveraging third-party expertise while managing the operational complexity and regulatory challenges associated with autonomous vehicles.

Tesla’s approach, by contrast, is vertically integrated: it controls the hardware, software, fleet operations, and now, through its new sharing model, the participation of individual Tesla owners. This tight integration could give Tesla an edge in scaling robotaxi services quickly and capturing more value by eliminating intermediaries.

From a financial standpoint, Tesla’s robotaxi service represents a massive opportunity. The global ride-hailing market is projected to be worth hundreds of billions of dollars in the coming years, and autonomous ride-hailing could substantially reduce operating costs by eliminating driver expenses.

Tesla’s dual fleet model not only lowers capital expenditure burdens but also incentivizes existing Tesla owners to participate, thereby expanding the available vehicle pool and improving service availability.

However, Tesla’s ambitious plans face challenges. Regulatory approval remains a patchwork process across different states and cities, and safety remains paramount. Tesla’s camera and neural network-based autonomy approach continues to attract both enthusiasm and scrutiny from experts and regulators alike. The rollout in Austin will be closely watched as a proving ground for Tesla’s technology and business model.

In summary, Elon Musk’s declaration that Tesla will not buy Uber but instead build its own robotaxi service with a unique owner-operator sharing economy model highlights Tesla’s commitment to disrupting transportation at its core. By empowering Tesla owners to earn money autonomously and rapidly scaling its self-driving fleet, Tesla aims to become the dominant force in autonomous ride-hailing, transforming how millions of people move and how vehicles are utilized in the process.

The coming months will be critical to Tesla’s ability to realize this vision and challenge the entrenched ride-hailing incumbents on their own turf.