The Robo Taxi's unveiling was accompanied by an impressive demonstration. Tesla had transformed a portion of the Warner Bros. lot into a mock city, complete with 20 Robo Taxis and additional Model 3 and Model Y vehicles, all operating autonomously. The vehicles navigated the simulated urban environment, showcasing their ability to interact seamlessly with each other and their surroundings.

One of the most intriguing aspects of the Robo Taxi is its potential to revolutionize the economics of transportation. Musk projected that the operating cost of these vehicles could be as low as 20 cents per mile, significantly undercutting traditional public transit options like buses, which he estimated at around a dollar per mile. This cost-effectiveness could make individualized mass transit a reality, potentially reshaping urban mobility.