Honestly, taxis don't need to be cheap, they need to be reliable. I'm sure a taxi company would be happy to spend $100k if it meant minimal maintenance and far less staff, since it would pay for itself pretty quickly.
The bigger question is, does it work? I'm guessing the answer to that is... no.
For true believers who hear Musk talk but have paid little or no attention to Tesla's actual progress with autonomous driving technology, new car development, production ramping, or robotics, the event will have seemed like something of a success.
robotaxis will be viable about the time they are powered by on-board micro-fusion reactors. Which will be great bc you'll never need to plug them in or refuel.
In the future, there are no potholes or imperfections of any kind. The ground and buildings are smooth, shiny, and constantly maintained to perfection somehow. Everything looks like a starship.
No statements on production for the robovan. Cost he said would be $0.05-0.10/mile, though unclear if that was to the owner or to the customer. Double that for the customer and it's still very cost effective.