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Tesla’s stock experienced a significant decline of nearly 9% following the company’s much-anticipated robotaxi event, which left many investors feeling unimpressed.
During the “We, Robot” event, CEO Elon Musk introduced the Cybercab, a self-driving concept vehicle characterised by its low profile and absence of traditional controls like steering wheels or pedals.
Musk expressed ambitions for Tesla to produce the Cybercab by 2027, but did not provide specifics regarding its manufacturing locations. He mentioned that the anticipated price for consumers would be below USD $30,000.
Musk also stated that Tesla aims to implement “unsupervised FSD” (Full Self-Driving) technology in Texas and California next year for the Model 3 and Model Y vehicles. Currently, FSD is available in a supervised format, which requires a human driver to remain alert and ready to intervene at any moment.
Last week, Tesla shares closed at $217.80, marking a 12% drop for the year and a 17% decrease over the last 12 months.
In addition to the Cybercab, Musk revealed plans for an autonomous Robovan capable of transporting up to 20 passengers or goods. He claimed this vehicle would address high-density transport needs, such as moving sports teams.
Following the event, analysts from Jeffries released a note titled “We, underwhelmed,” reflecting widespread disappointment. Barclays analysts echoed this sentiment, stating that the event did not present any immediate opportunities for Tesla and instead focused on Musk’s long-term vision for fully autonomous driving.
“As expected, like prior Tesla product unveils, the event was light on details,” noted Barclays analysts. They also emphasised that there were no updates on FSD progress or improvements in the technology.
Furthermore, Morgan Stanley analysts pointed out that Musk did not convincingly position Tesla as an artificial intelligence company during the presentation. They criticised the lack of details regarding advancements in FSD or any potential collaboration with xAI, Musk’s AI venture.
The analysts remarked that the event “overall disappointed expectations on a number of areas,” particularly concerning FSD data and ride-share economics.
In light of these developments, it appears that it will take years before Tesla can deploy self-driving cars on public roads, with regulatory scrutiny likely complicating matters related to vehicle safety features.
Moreover, Paul Miller from Forrester expressed scepticism about the feasibility of a USD $30,000 Cybercab arriving within the proposed timeline.
“It will be extremely difficult for Tesla to offer a new vehicle at that price within that timescale,” he added. He also suggested that achieving such pricing without external subsidies would be implausible this decade.
Among companies successfully operating self-driving cars is Waymo, which has been providing its robotaxi service to the public since June.