Elon Musk said Tesla robotaxis with no human drivers would be available in some US markets next year.
It continues a habit of bold pronouncements that have excited many investors while often missing deadlines.
"Probably two years from now we'll make a car with no steering wheels or pedals," the Tesla CEO predicted, while acknowledging he is often late to meet aggressive targets.
Central to this promise is a new microchip for self-driving vehicles unveiled by Musk during a webcast presentation yesterday.
Made by Samsung Electronics in Texas, the chip now in all vehicles is hoped to give Tesla an edge over rivals and show its massive investment in autonomous driving.
It was described by Musk as "basically our entire expense structure" – will pay off.
The webcast presentation came two days before Tesla is expected to announce a quarterly loss on fewer deliveries of its Model 3 sedan, which represents Tesla's attempt to become a volume car maker.
Tesla has been working on a self-driving chip since 2016 and Musk had previously forecast that cars would be fully self-driving by 2018, a target Tesla has missed.
Investors appeared unmoved by the chip announcement but shares rose slightly in after-hour trading following the announcement of the robotaxis.