Investors Underwhelmed by Tesla’s Robotaxi Announcement

Investors Underwhelmed by Tesla’s Robotaxi Announcement


Cybercab

Elon Musk, the CEO of Tesla, introduced‌ the Cybercab ⁢prototype‍ at an exclusive event in Hollywood. ‌Despite the grand reveal, investors⁣ seemed unimpressed as Tesla’s stock took a hit in early trading.

During the “We, Robot” event in Hollywood, ⁤Musk‌ showcased Tesla’s driverless⁢ Cybercab prototype. However, investor reaction was lukewarm ​as shares of the electric vehicle company dropped when trading began on​ Friday.

Shortly after ⁣market opening on Friday,⁤ Tesla’s stock (TSLA) saw a 9% decline.

Musk​ presented a two-seat‍ robotaxi without traditional controls like a steering ⁤wheel or pedals ​at Warner Bros. studio in Burbank on⁣ Thursday.

Musk announced plans‍ for a fleet of autonomous vehicles⁢ and robots with Cybercabs​ being produced before 2027. He mentioned that consumers could⁤ purchase one for under $30,000 and envisioned transforming parking lots into parks with these vehicles according to ​the Wall Street Journal.

In ⁤addition to this ⁤project, Musk⁢ also expressed confidence in achieving “unsupervised FSD,” Full Self-Driving capabilities in Texas and ⁤California by next year using Model 3 ⁤and Model Y cars from ​Tesla.

Analysts at Barclays criticized Musk for making bold‍ claims without⁤ providing sufficient details about implementation.

“The event lacked specifics but highlighted Tesla’s growth strategy involving ​AI/AV [autonomous vehicles],” noted Barclays’ U.S. autos and mobility team via CNBC early on Friday.

“There⁢ were no⁣ updates regarding immediate opportunities or production plans for‍ their‍ low-cost ⁤model expected by mid-2025,” ⁣they added. ‌”No progress reports on⁣ FSD‌ development‍ were shared either.”Analysts from Piper‌ Sandler echoed similar sentiments stating‍ that many ⁤firms focused on short-term gains might find⁢ the robo-taxi ⁢unveiling underwhelming.
“We anticipate potential stock decline over the ⁢next few weeks as initial excitement fades,” suggested analysts from this investment bank via‌ CNBC.

California

2024-10-29 05:15:03
Post originally published on www.ibtimes.com

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