Tesla’s much-hyped ‘We, Robot’ event, held in Los Angeles, fell short of investor expectations, sending TSLA shares tumbling in premarket trading on Friday. The event, which aimed to showcase Tesla’s latest advancements in robotics and autonomous driving, failed to generate the kind of positive sentiment that the market was hoping for.
CEO Elon Musk unveiled the Cybercab, Tesla’s fully autonomous vehicle, at the event. The company made 20 units of the electric vehicle available, and one even drove itself onto the stage with Musk seated within. The Cybercab, with its impressive butterfly wings that opened upwards, left attendees awestruck and was presented as a cost-competitive option to existing ride-hailing services. Musk announced that the Cybercab would be priced under $30,000.
However, the billionaire’s comments that the Cybercab would not enter production until 2026, or possibly even 2027, spooked investors. This extended timeline, coupled with the lack of near-term catalysts for growth, fueled concerns about Tesla’s future prospects.
Tesla also announced its unsupervised full self-driving technology, expected to be released in Texas and California in 2025, with plans to expand based on state regulatory parameters. The company also provided updates on its Optimus humanoid robots, stating that they would be priced at $25,000-$30,000 in the long term. Gene Munster of Deepwater Asset Management noted that the robots might not reach that price point until 2030.
The event also saw the surprise launch of the Robovan, which Munster expects to materialize by 2028 at best. With regulatory clearance for unsupervised FSD still uncertain and most other product offerings not expected to hit the market before 2027, investors expressed concern about the absence of any immediate catalysts that could drive the stock out of its current slump.
As a result of these concerns, TSLA stock plummeted 5.88% to $224.72 in premarket trading. While Tesla’s technological advancements in robotics and autonomous vehicles are promising, the lack of tangible progress in the near term has left investors feeling apprehensive about the company’s immediate future.
