Tesla in talks with Palo Alto about Cybercab tests

Tesla is talking with officials at Palo Alto about Cyercab tests for its Robotaxi rideshare service. The company wants Palo Alto to be a testing ground for the Tesla Cybercab as it prepares to launch the Robotaxi rideshare service. 

According to local news outlets, the city already offers a popular rideshare service called Palo Alto Link. However, Palo Alto Link can be costly. 

Palo Alto officials are exploring the potential of Tesla’s Robotaxi rideshare services. Tesla recently unveiled the Cybercab, which Elon Musk estimated could offer rides as low as $0.30 per mile at scale. The Tesla Cybercab could be a way for the city to offer rideshare services at more affordable prices. 

According to city spokesperson Meghan Horrigan-Taylor, Palo Alto held preliminary discussions with Tesla. If Tesla strikes a deal with Palo Alto, its Robotaxi rideshare services will supplement the city’s existing taxi service, including Palo Alto Link. 

Palo Alto Link is similar to Uber Pool but offers cheaper rates. The city launched Palo Alto Link in March 2023, a few years after it ceased its free Palo Alto Shuttle service due to plummeting revenues. 

The city’s discussions with Tesla comes at a time when Palo Alto is rethinking its public transportation options. It seeks to offer cheap and convenient rides to the community. 

Palo Alto Link has gained popularity among the community, with users rising from 2.7 per service hour to 3.1. However, the city will need to fund the service soon.

A two-year $2 million grant from the Santa Clara County Valley Transportation Authority initially supported Palo Alto Link. The grant is close to expiring, leaving the city to handle the cost of Palo Alto Link.

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