Tesla CEO Elon Musk has revealed plans to unveil a robotaxi on August 8, boosting Tesla's stock by 3.8% after hours.

The announcement follows confusion over the fate of the entry-level Model 2, with reports of its cancellation in favor of the self-driving robotaxi initiative.

Tesla aims to invigorate electric vehicle demand with price cuts up to $7,000, despite reporting lower auto sales and a subdued demand forecast in the first quarter.

The company contends with strong competition in China and concerns over meeting delivery targets amidst a mixed media narrative.

Musk's emphasis on the development of Full Self-Driving (FSD) systems and claims of 'superhuman' capabilities reflect Tesla's long-term bet on autonomous driving.

Safety and regulatory hurdles have marked the cautious deployment of Tesla's self-driving technology in the US, with the 'autopilot' feature facing particular scrutiny.

Investor anticipation builds ahead of the robotaxi reveal, signaling market interest in Tesla's autonomous vehicle strategy.