Zevo to Integrate Robotaxis, Starting with Tensor Vehicles

The Rise of Personal Autonomous Vehicles

The concept of driverless cars is transitioning from science fiction to reality, with companies such as Waymo already offering commercial robotaxi services in several cities. Numerous automotive manufacturers, both established and emerging, are actively working towards integrating similar autonomous capabilities into privately owned vehicles within the coming years.

Potential Applications of Personal AVs

Should fully autonomous vehicles (AVs) become commonplace, a wide range of new possibilities will emerge. Individuals might utilize their AVs for tasks like grocery shopping or running errands, a vision pursued by companies like Autolane. Elon Musk, CEO of Tesla, envisions owners leveraging their vehicles to provide ridesharing services, creating a convenient and potentially lucrative income stream.

Zevo and the Expansion into Robotaxis

Hebron Sher, co-founder of Zevo, a Dallas-based company, intends to capitalize on these evolving trends. Zevo has been operating an exclusively electric vehicle (EV) car-sharing fleet for just over a year and is now expanding into the robotaxi sector, beginning with a partnership with a new entity called Tensor.

Introducing Tensor: A New Contender

Tensor is a relatively new startup that unexpectedly surfaced earlier this year, originating from the Silicon Valley-based AutoX, which also had operations in China. The company makes a bold claim: it aims to be the first to offer fully autonomous vehicles for sale to the general public, with a target date of 2026. Zevo has committed to purchasing up to 100 Tensor vehicles to integrate into its existing network.

Challenges and Timelines

Specific details regarding the rollout timeline remain scarce, and Tensor still faces the significant challenge of demonstrating its ability to manufacture vehicles at scale with consistent reliability. These are substantial obstacles that have hindered the progress of many other startups in recent years. The company asserts that its production schedule is primarily dependent on securing global regulatory approvals, rather than facing inherent product limitations.

If successful, Zevo customers would have the option to rent Tensor AVs, effectively creating a decentralized robotaxi service.

Echoes of Past Promises

This announcement evokes memories of the ambitious, yet largely unfulfilled, predictions made a decade ago during the initial surge of excitement surrounding self-driving car technology. However, with the current presence of operational robotaxis, the prospect appears somewhat more achievable this time around.

Tensor’s Vision for the Future

“Tensor’s vision is to build a future where everyone owns their own Artificial General Intelligence — a personal AGI that enables more time, freedom and autonomy,” stated Hugo Fozzati, Tensor’s chief business officer. “This partnership with Zevo is not merely a vehicle sale; it empowers individuals and micro-entrepreneurs to participate in and benefit from the AV business within this new AI era.”

Zevo’s Strategic Investments

This isn’t Sher’s first venture into supporting unproven companies. In October, Zevo announced a preliminary agreement to purchase 1,000 vans from Faraday Future, an EV startup that has consistently faced financial difficulties. Faraday Future, which has struggled for ten years to produce and sell its FF91 luxury SUV, has recently begun importing more affordable electric vans from China for assembly in the U.S., with the first units expected later this month.

Rationale Behind the Investments

Sher’s willingness to invest in these companies is driven by two key factors. Firstly, their limited track records translate to more favorable pricing. Secondly, and more importantly, Sher believes these companies are more receptive to allowing Zevo to deeply integrate with their vehicles’ software – a critical requirement for enabling peer-to-peer sharing, particularly in the context of robotaxis.

Advantages of Working with Startups

Sher notes that established automakers are often less flexible and their existing technology is, in his assessment, inadequate. He highlights the benefits of collaboration between startups, fostering a synergistic environment where solutions can be developed jointly. He believes this collaborative approach has been a positive experience.

A Mutually Beneficial Partnership

Sher views the Tensor deal as a win-win scenario. Tensor gains an early adopter and an opportunity to validate its robocar technology, while Zevo secures a favorable agreement and the crucial software integration it requires.

He acknowledges that it represents a “calculated risk.”