Electric vehicle (EV) maker Tesla (TSLA) has hit yet another roadblock. This time, Tesla’s attempt to trademark the terms “Robotaxi” and “Cybercab” have been rejected by the U.S. Patent and Trademark Office (USPTO), calling them “too generic.” According to the TechCrunch, the USPTO stated that these terms are “merely descriptive” and were used to describe “similar goods and services by other companies.”
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Tesla submitted two separate applications for the term “Robotaxi.” Elon Musk wanted to trademark “Robotaxi” to reference all the EVs that Tesla makes, while the other for the much-awaited ride-hailing service. While the USPTO has blatantly rejected the first application, the second one is still under review by the office.
Will Tesla Contest the USPTO’s Decision?
The USPTO’s rejection is “nonfinal,” meaning Tesla has three months to respond to the issues raised or risk the application being abandoned. Tesla needs to submit a specific plan as to how and why it deserves the “Robotaxi” trademark, with a full list of documents, including fact sheets, instruction manuals, brochures, and advertisements.
Meanwhile, the trademark for “Cybercab” has been halted since other companies also use similar “Cyber” branding. Musk has often used the words “Robotaxi” and “Cybercab” interchangeably to refer to Tesla’s self-driving autos. Tesla, itself holds a trademark for the word “Cybertruck.” Additionally, Tesla has filed for other trademarks such as “Robobus” and “Robovan” for its autonomous ride-hailing autos. These applications were submitted soon after Musk unveiled two new vehicles at the “We, Robot” event in October 2024.
Tesla’s Ride-Hailing Service Hailed ‘Alicorn’
Tesla has officially named its ride-hailing service platform “Alicorn,” to signify the dual characteristics of both a unicorn and a pegasus. The name reflects the car’s use as both a personal passenger car and a way of earning passive income, just as Musk had introduced the project in April 2019. Musk said that your vehicle could work and bring in between $10,000 and $30,000, annually while you sleep.
Tesla’s robotaxis, designed for its ride-hailing app, are expected to be driverless and fully-autonomous. This means they will require no external control or monitoring while being used. Hence, these autos could work in both scenarios, for personal use and ride-hailing.
Tesla’s most-anticipated robotaxi service is set to begin operations in Austin this June. However, the initial launch will include a fleet of only 10 to 20 cars. Tesla is prepping for the rollout by installing some new features into its existing smartphone app. Reports suggest that there won’t be a separate app for the ride-hailing feature. Instead, everything will be integrated into the main Tesla car app used by the owner. Musk is hopeful that the Austin launch will be a success and Tesla could soon roll out the robotaxi platform to other cities.
Is Tesla Stock Rated a Buy?
Analysts prefer to remain on the sidelines on Tesla stock currently amid declining auto sales. On TipRanks, TSLA stock has a Hold consensus rating based on 16 Buys, 10 Holds, and 11 Sell ratings. Also, the average Tesla price target of $284.23 implies 2.9% upside potential from current levels. Year-to-date, TSLA stock has lost 31.6%.
