Tesla Inc. (NASDAQ:TSLA) stock fell by 10% after a less-than-stellar robotaxi reveal event on Friday that failed to wow Wall Street.

What Happened: Tesla CEO Elon Musk unveiled the company’s future vision on Friday, which includes two-seater Cybercabs operating without human intervention. Notably, these vehicles are designed without a steering wheel or foot pedals.

According to the report by Business Insider, Wall Street was not impressed, especially considering the already operational robotaxi service by Waymo. Analysts drew parallels between the Cybercab demos and a slow, short amusement park ride, criticizing them for their controlled environment.

Don’t Miss:

The report states that Tesla Inc. shares closed at $238.77 on Thursday. On Friday, the stock opened at $220.13, dropped to a low of $214.38 during early trading, and finished the day at $217.80.

Analysts also highlighted the absence of details on Tesla’s execution strategy. Toni Sacconaghi, a Bernstein analyst, pointed out the need for Tesla to provide more proof to investors, commenting on the lack of detail.

Also Read: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Despite Musk’s projected timeline of launching a robotaxi network by 2026 or 2027, Sacconaghi expressed doubts about the potential for significant profits due to technical and regulatory hurdles.

Simultaneously, Uber’s stock witnessed a 9% increase, as investors are of the opinion that Tesla’s proposed robotaxi network is unlikely to disrupt Uber’s main business.

Trending: ‘Scrolling to UBI’: Deloitte’s #1 fastest-growing software company allows users to earn money on their phones – invest today with $1,000 for just $0.25/share

Why It Matters: The lackluster response to Tesla’s robotaxi reveal event underscores the challenges the company faces in convincing investors of its future vision.

The skepticism expressed by analysts and the subsequent drop 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 stock suggests that investors still see value in traditional ride-hailing services, despite the advancements in autonomous vehicle technology.

Read Next:

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.

Get the latest stock analysis from Benzinga?

This article Tesla Stock Tumbles After Underwhelming Robotaxi Presentation originally appeared on Benzinga.com

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision