• Tesla shares tumbled 8% on Friday after the company’s long-awaited robotaxi event failed to impress investors
• Elon Musk revealed the company’s Cybercab concept vehicle and said consumers would be able to buy one for under $30,000
• Analysts criticized the event for lacking details on near-term opportunities and updates on Tesla’s self-driving technology progress
Tesla‘s stock fell sharply on Friday after the company’s highly anticipated event unveiling its robotaxi concept failed to generate enthusiasm among investors.
Lackluster Reveal Disappoints Investors
At the “We Robot” event on Thursday night, CEO Elon Musk took the stage to reveal Tesla’s self-driving Cybercab vehicle. The futuristic silver two-seater has no steering wheel or pedals and is designed to be fully autonomous.
Musk said Tesla aims to begin production before 2027 and will sell the Cybercab for under $30,000. However, he provided no details on manufacturing location or timeline.
Additionally, Musk stated he expects to launch unsupervised full self-driving technology in Tesla’s existing Model 3 and Model Y vehicles in Texas and California next year. But he did not present data showing improvements to the current FSD system.
Analysts Underwhelmed by Lack of Details
Analysts were disappointed by the lack of specifics revealed at the event.
Barclays analysts said the presentation focused on Musk’s long-term vision rather than near-term opportunities. Piper Sandler analysts felt most investors would be underwhelmed by the robotaxi unveiling.
Morgan Stanley analysts said Musk failed to make the case Tesla is an AI company and did not provide details on improvements to FSD or rumored plans to work with his own AI firm. They felt the event overall lacked substance.
Challenges to Launching Affordable Robotaxis
Experts say Tesla faces significant hurdles to launching a $30,000 self-driving robotaxi on public roads in the near future.
Automotive analyst Paul Miller believes it will be extremely difficult for Tesla to offer a vehicle at that price point this decade without subsidies. Alphabet’s Waymo remains one of the only companies to successfully deploy driverless robotaxis so far.
Regulators also have numerous safety concerns to weigh regarding self-driving vehicle software.
Stock Drops Over 11% This Year
Tesla shares plunged over 8% on Friday after the robotaxi reveal failed to generate momentum. The stock is now down more than 11% year-to-date.
With the event failing to impress, analysts believe Tesla’s stock may face further pressure in the coming weeks as hype around the robotaxi reveal fizzles out.
