Tesla shares fall 9% as Cybercab presentation fails to impress investors

Tesla shares fell 9% at the close of trading the day before – the long-awaited presentation of robotaxi from the largest electric vehicle manufacturer did not impress investors. They didn’t like that the company didn’t share immediate short-term plans.

Image source: telsa.com

On Thursday, October 10, Tesla CEO Elon Musk presented at the “We, Robot” event the Cybercab concept car with autopilot – a two-seater car without a steering wheel or pedals, the start of serial production of which is planned in 2026. He spoke about the company’s plans to create a fleet of unmanned vehicles and robots; the price of the Tesla Cybercab will be less than $30,000. And next year, according to Musk, “uncontrolled FSD” will be launched in Texas on Model 3 and Model Y electric vehicles.

FSD (Full Self-Driving) is a separately purchased driver assistance system, which currently only works in a “controlled” version, that is, it requires driver participation. In addition to the Cybercab, Musk also revealed plans for an autonomous electric van, the Robovan, that could carry up to 20 people or be used to transport cargo. The car, according to Musk, “solves the problem of high density” – it can accommodate an entire sports team.

Financial analysts were not happy with the presentation. Barclays said Tesla had not disclosed anything about its short-term outlook, with priority given to Musk’s vision for the future of self-driving systems. He could not prove that Tesla has become a company that specializes in artificial intelligence, Morgan Stanley added: Musk did not provide details about the improvements to FSD and did not comment on rumors of a Tesla merger with xAI, his AI startup. “We wouldn’t be surprised if in the coming weeks, as the momentum built up before the event fades, [Tesla] shares begin to sell off,” Piper Sandler noted.

After the presentation, it became clear that it would be years before the company would put a fleet of self-driving cars on public roads, and regulators would need to look into concerns about the safety systems on those vehicles. The event “generally fell short of expectations on a number of fronts: a lack of insight regarding the timing of FSD and technology changes, ridesharing economics and go-to-market strategy,” Morgan Stanley said.