If it works. Don't Teslas still have problems in his stupidass underground Vegas loop? And that's pretty much as ideal driving conditions as you can get.
Wrong. The problem right now is low utilisation of cars. Most cars just sit around 90-95% of the day. A robotaxi would have much higher utilisation, therefore fewer cars are needed overall.
I also hope this can be a solution for people who need a car to live while reducing the number of individual cars, but I'm afraid Tesla is not really interested in reducing the number of cars.
Robotaxis are NOT going to reduce the number of cars that are filling up the streets and parking spaces.
They are replacing some of the traditional traffic while they carry passengers, and then they add more traffic when going home (or searching for a parking lot, or doing idle circles) after the ride, and when coming for the next passenger.
When I say people who need a car, I mean people outside of cities where it is not reasonable to have public transportation. In this case, having a system of automatic electric cars that can be used by different people for their daily commute could reduce the number of cars outside of cities if the service is good enough.
Inside cities, public transportation is the solution.