Elon Musk announced that Tesla will unveil a robotaxi this summer, aiming to showcase advanced self-driving technology despite ongoing safety concerns surrounding autonomous vehicles.

Tesla CEO Elon Musk revealed plans to showcase a Tesla robotaxi on August 8, highlighting the electric car maker's strides in self-driving capabilities. Musk's announcement led to a surge in Tesla's stock price in after-market trading.

Tesla's Full Self-Driving (FSD) system, according to Musk, will surpass human driving capabilities to a "superhuman" level, paving the way for vehicles to function as robotaxis when not in use by their owners.

While self-driving technology holds promise, its adoption in the United States has faced setbacks due to safety concerns. San Francisco, a hub for testing autonomous vehicles, has seen challenges such as vandalism against Waymo's robotaxis and regulatory crackdowns following accidents involving GM-owned Cruise.

Criticism has also surrounded Tesla's "autopilot" feature, accused of being oversold in terms of its actual capabilities.

Tesla's robotaxi announcement coincided with reports debunking Musk's earlier plans to manufacture an electric car model priced around $25,000, aimed at broadening electric vehicle adoption.

The recent quarterly sales report from Tesla revealed a decline in auto sales, reflecting subdued demand for electric vehicles, particularly in markets like China where local competitors dominate.

Wedbush analyst Dan Ives described the quarterly results as "an unmitigated disaster," underscoring challenges faced by Tesla amidst the evolving landscape of electric vehicle adoption.