Tesla Inc. (NASDAQ:TSLA) stock fell by 10% after a less-than-stellar robotaxi reveal event on Friday that failed to wow Wall Street.
What Happened: Tesla CEO Elon Musk unveiled the company's future vision on Friday, which includes two-seater Cybercabs operating without human intervention. Notably, these vehicles are designed without a steering wheel or foot pedals.
According to the report by Business Insider, Wall Street was not impressed, especially considering the already operational robotaxi service by Waymo. Analysts drew parallels between the Cybercab demos and a slow, short amusement park ride, criticizing them for their controlled environment.
The report states that Tesla Inc. shares closed at $238.77 on Thursday. On Friday, the stock opened at $220.13, dropped to a low of $214.38 during early trading, and finished the day at $217.80.
Analysts also highlighted the absence of details on Tesla's execution strategy. Toni Sacconaghi, a Bernstein analyst, pointed out the need for Tesla to provide more proof to investors, commenting on the lack of detail.
Also Read: Tesla Robotaxi Day Event 'More Fanfare Than Substance': 8 Analysts On Cybercab, Optimus, Autonomous Vehicle Vision
Despite Musk's projected timeline of launching a robotaxi network by 2026 or 2027, Sacconaghi expressed doubts about the potential for significant profits due to technical and regulatory hurdles.
Simultaneously, Uber's stock witnessed a 9% increase, as investors are of the opinion that Tesla's proposed robotaxi network is unlikely to disrupt Uber's main business.
Why It Matters: The lackluster response to Tesla's robotaxi reveal event underscores the challenges the company faces in convincing investors of its future 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.
Furthermore, the rise in Uber's stock suggests that investors still see value in traditional ride-hailing services, despite the advancements in autonomous vehicle technology.
- Elon Musk May Unveil Tesla's Robotaxi, But Consumers Respond With 'Ehhh,' New Study Reveals Skepticism, Need For Trust-Building
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
