Tesla Inc.’s TSLA stock fell 10% after Friday’s low-profile robotaxi unveiling event failed to wow Wall Street.
What Happened: Tesla CEO Elon Musk on Friday unveiled his vision for the company’s future, including a two-seater CyberCab that operates without human intervention. Notably, these vehicles are designed without a steering wheel or foot pedals.
According to a Business Insider report, Wall Street was unimpressed, especially considering the robotaxi service Waymo already operates. Analysts criticized the controlled environment, noting similarities between the CyberCab demonstration and slow, short amusement park rides.
Tesla stock closed Thursday at $238.77, according to the report. Shares opened Friday at $220.13, fell to a low of $214.38 in early trading, and closed the day at $217.80.
Analysts also emphasized that details regarding Tesla’s execution strategy are unclear. Bernstein analyst Toni Sacconaghi commented on the lack of details, noting that Tesla needs to provide more evidence to investors.
Also read: Tesla Robotaxi Day event “More Fanfare Than Substance”: 8 analysts talk about CyberCab, Optimus and the vision for self-driving cars
Despite Musk’s predicted timeline for launching a robotaxi network by 2026 or 2027, Sacconaghi said technical and regulatory hurdles have raised questions about the potential for significant returns. expressed.
At the same time, Uber stock rose 9% as investors believe Tesla’s proposed robotaxi network is unlikely to disrupt Uber’s core business.
Why it matters: The muted response to Tesla’s robotaxi announcement event highlights the challenges the company faces in convincing investors of its vision for the future.
The skepticism expressed by analysts and the subsequent drop in Tesla’s stock price highlight the importance of providing detailed plans and demonstrating the feasibility of such ambitious projects.
Moreover, the rise in Uber stock suggests that despite advances in self-driving car technology, investors still see value in traditional ride-hailing services.
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