The robotaxi evaluation only made sense when they claimed to be years ahead of competitors. A robotaxi service operating in a regular taxi market could have large margins. But Waymo is already operating, any Tesla robotaxi company is going to compete away all the margin with Waymo.
jfengel|6 months ago
Which also happens to be where most of the money would be, so it's probably a good bet. Tesla seems to be hoping to displace Uber in the suburbs, while being an also-ran against Waymo in the denser downtowns. That includes ferrying a fair number of people into and out of cities, where Waymo can't (currently) go.
That's probably not as lucrative as Waymo's core market, but it could have some decent margins.