Tesla’s stock took a significant hit on Friday after the company’s much-anticipated robotaxi reveal failed to impress Wall Street. The event, which showcased Tesla’s vision for a future of self-driving, two-seater Cybercabs without steering wheels or pedals, was met with skepticism from investors.
Analysts expressed disappointment with the limited demonstration, highlighting the fact that Waymo already offers an operational robotaxi service. Comparisons were drawn between Tesla’s Cybercab demos and a slow amusement park ride, criticized for their controlled environment. The lack of concrete details regarding Tesla’s execution strategy also fueled investor anxieties.
Bernstein analyst Toni Sacconaghi pointed out the need for Tesla to provide more proof to investors, emphasizing the lack of clarity surrounding the company’s plans. Despite Elon Musk’s projection of launching a robotaxi network by 2026 or 2027, Sacconaghi expressed doubts about the potential for significant profits due to technical and regulatory hurdles.
The market’s reaction was clear. Tesla’s stock closed at $217.80 on Friday, a significant decline from its Thursday closing price of $238.77. Meanwhile, Uber’s stock experienced a 9% increase, suggesting that investors believe Tesla’s proposed robotaxi network is unlikely to disrupt Uber’s core business.
The tepid response to Tesla’s robotaxi reveal underscores the challenges the company faces in convincing investors of its long-term vision. The skepticism expressed by analysts and the subsequent drop in Tesla’s stock value highlight the importance of providing detailed plans and demonstrating the feasibility of such ambitious projects. It seems that while autonomous vehicle technology is advancing, investors still see value in traditional ride-hailing services. The future of robotaxis, it appears, remains uncertain.
