Tesla’s Robotaxi Event Fails to Impress Investors
Tesla shares took a hit on Friday, closing down nearly 9%, after the company’s highly anticipated robotaxi event failed to meet investor expectations. CEO Elon Musk unveiled the Cybercab, a sleek, silver, two-seater self-driving concept car, at the “We, Robot” event on Thursday night. While Musk touted Tesla’s ambition to create a fleet of autonomous vehicles and robots, the lack of concrete details left many analysts and investors underwhelmed.
Musk stated that Tesla aims to produce the Cybercab before 2027, with a price tag under $30,000. He also announced plans for an autonomous electric Robovan capable of transporting up to 20 people or goods. However, he provided no information on manufacturing locations or timelines for either vehicle.
Musk further claimed that Tesla expects to have “unsupervised FSD” operational in Texas and California next year for its Model 3 and Model Y vehicles. FSD, or Full Self-Driving, is Tesla’s premium driver assistance system currently available in a “supervised” version. This means a human driver is still required to be ready to take control at any time.
Analysts Express Disappointment
Following the event, several analysts expressed disappointment with the lack of concrete information and near-term opportunities presented by Tesla. Jeffries analysts published a note titled “We, underwhelmed,” while Barclays analysts stated that the revelations failed to highlight any immediate opportunities for the company.
Piper Sandler analysts predicted a potential stock sell-off in the coming weeks, as pre-event momentum fizzles. Morgan Stanley analysts, meanwhile, criticized Musk for failing to convincingly position Tesla as an artificial intelligence company, noting the absence of details regarding FSD improvements or any potential collaboration with Musk’s AI company, xAI.
Challenges and Uncertainties Remain
The event highlighted the significant challenges and uncertainties surrounding Tesla’s robotaxi ambitions. Experts, such as Forrester analyst Paull Miller, expressed skepticism about Tesla’s ability to launch a $30,000 Cybercab within the stated timeframe. Miller pointed to the difficulty of achieving such a low price point without external subsidies or Tesla incurring losses on each vehicle.
While Tesla continues to push forward with its vision of a self-driving future, the path to widespread adoption remains long and complex. Regulatory hurdles, safety concerns, and technological advancements will all play a crucial role in determining the success of Tesla’s robotaxi endeavors.
