Photo: Joe Raedle/Getty Images

Tesla plans to introduce self-driving taxis in some U.S. cities next year, CEO Elon Musk announced on Monday at a company event for investors, during which it also unveiled a new chip to power its autonomous driving system.

The big picture: Tesla has long proclaimed its ambition to operate fleets of self-driving taxis. But limitations of the company's currently available autonomous driving tech — along with well-publicized accidents involving the limited self-driving technology its cars currently offer — raise questions about Tesla's aggressive timeline.

What's new: At the event, Tesla unveiled a new proprietary chip at the center of its autonomous driving tech that it designed on its own for the first time, and said it's already working on the device's next iteration. Previously, Tesla had been using Nvidia chips.

  • "All Tesla cars being produced right now have everything necessary for full self driving — all you need to do is improve the software," said Musk of the new chip. He told investors they'd be able to test-drive cars with the improved software later during the event.
  • Musk's acknowledgment of the need for improved software is also a nod to the limits of Tesla's current autonomous driving system, which cannot currently handle all aspects of the road without human intervention.
  • Tesla’s robotaxi fleets will be made up of vehicles owned by customers, who will be able to lend them out to ferry passengers when they’d otherwise be idle. Tesla will take a 20%–30% cut on those fares, according to Musk, who described the business model as a cross between Uber and Airbnb.

What's next: Tesla is scheduled to release its latest earnings report Wednesday, with analysts expecting disappointing financial results.

Go deeper:

Go deeper

Updated 42 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Fauci: Trump hasn't been to a COVID task force meeting in months — Trump claims COVID "will go away" during debate.
  2. Sports: The youth sports exodus continues — Big Ten football is back.
  3. Health: How to help save 130,000 livesFDA approves Gilead's remdesivir as treatment How the pandemic might endMany U.S. deaths were avoidable.
  4. Retail: Santa won't greet kids at Macy's this year.
  5. World: Spain and France exceed 1 million cases.
58 mins ago - Health

Fauci: Trump hasn't been to a COVID task force meeting in months

Photo: Drew Angerer/Getty Images

President Trump has not attended a White House coronavirus task force meeting in “several months,” NIAID director Anthony Fauci told MSNBC on Friday.

Why it matters: At the beginning of the pandemic, the task force, led by Vice President Mike Pence, met every day, but in the "last several weeks," members have held virtual meetings once a week, Fauci said, even as the number of new cases continues to surge in the country.

2 hours ago - Health

How to help save 130,000 lives

People wear face masks outside Grand Central Terminal in New York City. Photo: Noam Galai/Getty Images

Nearly 130,000 fewer people will die of COVID-19 this winter if 95% of Americans wear face masks in public, according to research published Friday.

Why it matters: “Increasing mask use is one of the best strategies that we have right now to delay the imposition of social distancing mandates," Dr. Christopher Murray of the University of Washington told the N.Y. Times.