Elon Musk not only announced the “Robotaxi” last week. He also announced an autonomous van and walking, humanoid robots that can talk, dance, and perform chores.
He basically ushered in the future.
And yet, for some reason, Tesla stock quickly…sank.
Is there something strange afoot here?
At a glance:
- Tesla’s stock dropped more than 7% as investors expressed disappointment with the debut of its $30,000 robotaxi, called Cybercab.
- Analysts criticized the lack of concrete details on Tesla’s full self-driving technology and Cybercab’s rollout, leading to concerns about the feasibility of scaling the project.
- Ride-hailing companies Uber and Lyft benefited from the event’s underwhelming reception, with both stocks rising by around 10%.
Tesla (TSLA) faced a significant stock decline on Friday, dropping over 7%, as investors and analysts voiced disappointment over the much-anticipated debut of Tesla’s robotaxi, the Cybercab. The event, titled We, Robot, aimed to showcase Tesla’s vision for fully autonomous vehicles but left many questioning the feasibility of the company’s ambitions.
Jefferies analysts were among the most critical, calling the Cybercab a “toothless taxi” and pointing out that Tesla has “ambitious targets with little evidence of feasibility.” The Cybercab, which lacks both a steering wheel and pedals, is designed to be fully autonomous. Tesla announced plans to start unsupervised full self-driving trials next year and aims to begin Cybercab production before 2027. However, the lack of a clear roadmap or detailed information on how Tesla plans to achieve these goals left investors and analysts skeptical.
The disappointment extended to other Wall Street firms. Morgan Stanley analysts highlighted a “disappointing lack of detail” regarding Tesla’s full self-driving technology and its market strategy. Similarly, RBC Capital’s Tom Narayan noted that investors were hoping for more concrete numbers and timelines, as Tesla events usually include such information for modeling future performance.
The muted response to the Cybercab’s unveiling led to a boost for ride-hailing companies Uber and Lyft, whose stocks surged by approximately 10% following the event. Analysts noted that the vagueness surrounding Tesla’s robotaxi rollout could mean that Uber and Lyft would not face immediate competition from Tesla’s autonomous services.
Despite the criticism, some analysts had a more optimistic view. Bank of America and Wedbush analyst Dan Ives praised the event, stating that Tesla’s humanoid robot Optimus exceeded expectations and that the company’s advancements in AI positioned it as more than just a traditional carmaker. Ives, a long-time Tesla bull, argued that We, Robot was a glimpse into Tesla’s future and a major step toward next-generation transportation.
It almost seems as though something political might be happening here.
If he were still a Democrat and he just unveiled all these amazing products, what do you think would have happened to the stock?