Tesla Stock Plummets After Underwhelming Cybercab Robotaxi Reveal
Tesla’s highly anticipated robotaxi event, featuring the unveiling of the Cybercab, left investors and analysts disappointed, triggering an 8% drop in the company’s stock. CEO Elon Musk introduced the sleek, silver two-seater Cybercab—a self-driving vehicle without a steering wheel or pedals—during the "We, Robot" event in Burbank, California. While Musk enthusiastically shared Tesla's vision for an autonomous future, with plans to sell the Cybercab for under $30,000 by 2027, the lack of concrete details on manufacturing and production timelines led to skepticism.
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Despite the futuristic appeal of a robotaxi and an accompanying "Robovan" designed to transport up to 20 people, many analysts were unimpressed. Barclays' analysts criticized the event for failing to provide near-term opportunities for Tesla, noting the absence of updates on Tesla’s Full Self-Driving (FSD) technology. Tesla’s FSD system, currently available in a supervised version, allows drivers to remain in control. However, Musk promised that an unsupervised version of FSD will be operational in Texas and California by next year.
Even optimistic investors, such as Wedbush Securities' Dan Ives, expressed disappointment with the lack of specifics. The event lacked substantial data on FSD progress and improvements, which many hoped would bolster Tesla’s credibility as an artificial intelligence leader. Competitors like Alphabet’s Waymo, which already operate robotaxi services, cast doubt on Tesla’s ability to meet its ambitious goals. Waymo’s vehicles are already providing thousands of rides per week, while Tesla’s Cybercab demonstrations appeared more like staged amusement park rides on a movie set, according to Wells Fargo analysts.
Tesla stock, which had already been under pressure throughout 2024, now faces a rocky path ahead. With its share price down more than 11% for the year, investors are cautious as Tesla heads into its next earnings call later this month. Musk's charisma and grand visions may continue to attract loyal fans, but Tesla’s near-term challenges and execution gaps could test investor patience in the months to come.
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