Tesla Inc. (NASDAQ:TSLA) Shares fell 10% after a less-than-stellar robotaxi reveal on Friday that failed to wow Wall Street.
What happened: Tesla CEO Elon Musk unveiled the company’s vision for the future on Friday, which includes two-seat Cybercabs that operate without human intervention. Notably, these vehicles are designed without a steering wheel or foot pedals.
According to the report Through Business Insider Wall Street was unimpressed, especially considering Waymo’s already operational robotaxi service. Analysts drew parallels between the Cybercab demos and a slow, short amusement park ride, criticizing them for their controlled environment.
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The report states that shares of Tesla Inc. closed at $238.77 on Thursday. On Friday, the stock opened at $220.13, fell to a low of $214.38 in early trading, and ended the day at $217.80.
Analysts also highlighted the lack of details on Tesla’s execution strategy. Toni Sacconaghia Bernstein analyst, pointed out the need for Tesla to provide investors with more evidence, commenting on the lack of detail.
Despite Musk’s expected timeline to launch a robotaxi network in 2026 or 2027, Sacconaghi expressed doubts about the potential for significant gains due to technical and regulatory hurdles.
At the same time, Uber shares rose 9% as investors believe Tesla’s proposed robotaxi network is unlikely to disrupt Uber’s core business.
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Why it mattersThe lackluster response to Tesla’s robotaxi unveiling underlines the challenges the company faces in convincing investors of its vision for the future.
Analysts’ skepticism and the subsequent decline 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 shares suggests that investors still see value in traditional taxi services, despite advances in autonomous vehicle technology.
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This article Tesla Stock Plummets After Disappointing Robotaxi Presentation originally appeared on Benzinga.com