Tesla's (TSLA) stock dropped by around 7.5% during Friday morning trading after CEO Elon Musk's highly anticipated robotaxi reveal left investors unimpressed. The shares had already fallen by nearly 1% on Thursday before the event. Tesla introduced its new self-driving car prototype, the Cybercab, which is expected to be the company’s first fully autonomous vehicle, though current models still require a driver.
The Cybercab, with an anticipated price of less than $30,000, is scheduled to enter production between 2026 and 2027.
However, the delay has fueled investor skepticism, with many hoping for the reveal of the more affordable Model 2 electric car, which was notably absent from the presentation. Tesla has reportedly shifted its focus to the Cybercab, delaying or scrapping plans for the Model 2, which was initially expected to retail for $25,000.
Gene Munster, managing partner at Deepwater Asset Management, pointed to the uncertain timeline as the main reason for the stock decline. Investors were hoping for faster production and improvements in Tesla’s margins, delivery growth rates, and Full Self-Driving (FSD) technology. The delay in the cheaper electric car further eroded investor confidence, as it risks slowing sales of Tesla's Model 3 and Y if buyers hold out for a more affordable option.
In summary, the disappointment surrounding the robotaxi reveal, combined with production delays, contributed to the steep drop in Tesla’s stock price, leaving investors uncertain about the company’s short-term prospects.
The Cybercab, with an anticipated price of less than $30,000, is scheduled to enter production between 2026 and 2027.
However, the delay has fueled investor skepticism, with many hoping for the reveal of the more affordable Model 2 electric car, which was notably absent from the presentation. Tesla has reportedly shifted its focus to the Cybercab, delaying or scrapping plans for the Model 2, which was initially expected to retail for $25,000.
Gene Munster, managing partner at Deepwater Asset Management, pointed to the uncertain timeline as the main reason for the stock decline. Investors were hoping for faster production and improvements in Tesla’s margins, delivery growth rates, and Full Self-Driving (FSD) technology. The delay in the cheaper electric car further eroded investor confidence, as it risks slowing sales of Tesla's Model 3 and Y if buyers hold out for a more affordable option.
In summary, the disappointment surrounding the robotaxi reveal, combined with production delays, contributed to the steep drop in Tesla’s stock price, leaving investors uncertain about the company’s short-term prospects.