Despite unveiling the Cybercab, Tesla's lack of key details left investors questioning its bold plans
Tesla shares dropped nearly 9 percent on Friday following the company’s long-awaited robotaxi event, which did not meet investor expectations.
According to CNBC, CEO Elon Musk revealed the Cybercab self-driving concept car at the ‘We, Robot’ event. The vehicle, a low, silver two-seater without steering wheels or pedals, is intended to be part of Tesla’s fleet of autonomous vehicles.
Musk stated that Tesla hopes to begin production before 2027 and price the car under $30,000, although he did not provide details on where it would be manufactured.
Musk also announced that Tesla’s Full Self-Driving (FSD) technology, which currently requires human supervision, will operate unsupervised in Texas and California by next year in the Model 3 and Model Y vehicles.
However, the lack of immediate developments in FSD progress left analysts and investors unimpressed. Tesla shares closed at $217.80 on Friday, down 12 percent year-to-date and 17 percent over the past 12 months.
In addition to the Cybercab, Musk introduced the Robovan, an autonomous, electric vehicle designed to carry up to 20 people or transport goods, which he said would “solve for high density” transportation needs. Despite these announcements, analysts were critical of the event’s lack of concrete details.
Jeffries analysts expressed their disappointment, titling their post-event note ‘We, underwhelmed.’ Barclays analysts echoed this sentiment, stating that the event prioritized Musk’s long-term vision for autonomous vehicles over near-term opportunities, offering little information on Tesla’s FSD progress.
Piper Sandler analysts predicted that the stock could see further declines, noting that pre-event momentum ‘fizzles’ without any significant updates.
Meanwhile, Morgan Stanley analysts criticized the lack of details on Tesla’s go-to-market strategy for ride-sharing and advancements in FSD technology, adding that they were “disappointed with the substance and detail” of the event.
It remains clear that Tesla’s fully autonomous vehicles will not be on public roads for several years, with regulatory approvals still needed.
Paul Miller, an analyst at Forrester, expressed doubt that Tesla could deliver the Cybercab for $30,000 within the projected timeline, stating that “economies of scale” or external subsidies would be required to reach that price point.
Meanwhile, competitors like Alphabet’s Waymo have already launched robotaxi services on public roads, offering their service to the general public since June.
