Tesla Stock Tumbles After Underwhelming Robotaxi Presentation

Tesla Inc (NASDAQ:TSLA) stock fell 10% after its presentation of a robotaxi failed to convince Wall Street.

Elon Musk, CEO of Tesla, unveiled the company’s future vision on Friday, which includes two-seater cybercabs that operate without human intervention. These vehicles are designed without steering wheels or pedals.

Business Insider reports that Wall Street was not impressed, especially considering Waymo’s already operational robotaxi service. The report said analysts drew parallels between Cybercab’s demonstrations and a slow, short amusement park ride, criticising them for their controlled environment.

The report said Tesla Inc. shares closed at $238.77 on Thursday. On Friday, the stock started at $220.13, fell to $214.38 in early trading and ended the day at $217.80.

The absence of details on Tesla’s execution strategy was also highlighted by analysts. Toni Sacconaghi, analyst at Bernstein, stressed the need for Tesla to provide more evidence to investors, commenting on the lack of detail.

Although Musk’s timetable is to launch a network of robot taxis by 2026 or 2027, Sacconaghi expressed doubts about the potential for significant profits due to technical and regulatory hurdles.

Uber shares, meanwhile, rose 9% as investors felt Tesla’s proposed robot taxi network would not disrupt Uber’s core business.

Tesla’s mixed reception to its robotaxi underlines the difficulties the company is having in convincing investors of its vision for the future.

Analyst scepticism and the subsequent fall in Tesla’s share price underline the importance of providing detailed plans and demonstrating the feasibility of such ambitious projects.

In addition, the rise in Uber’s share price suggests that investors still see value in traditional ride-sharing services, despite advances in autonomous vehicle technology.