Tesla is gearing up to unveil its long-promised self-driving taxi later this year, amid struggles in electric car sales and competition from cheaper Chinese electric vehicles.
CEO Elon Musk announced on his social media platform, Twitter, on Friday that Tesla's self-driving taxi will be revealed on August 8.
The company's stock surged up to 5.1% in after-hours trading in New York. Tesla's shares have fallen by 34% this year until Friday's close.
Shortly before Musk announced news of the self-driving taxi, he lost the title of the world's third-richest person to Meta Platforms CEO Mark Zuckerberg.
Fully self-driving cars, introduced to investors in 2019, have been a key element in Tesla's high valuation.
In recent weeks, the company launched the latest version of its driver-assistance software called Full Self-Driving (FSD).
The company stated that its next-generation vehicle platform will include a cheaper car and an autonomous taxi.
While the company has teased both, it hasn't yet unveiled any prototypes, and Musk's Friday tweet suggests that the self-driving taxi takes precedence over the cheaper car, although both will be designed on the same platform.
Reuters reported earlier on Friday that the carmaker scrapped plans for the lower-cost car, shifting more resources towards launching a self-driving taxi into the market. Musk responded by saying "Reuters is lying" without providing details.
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