Tesla shares dropped almost 9% on Friday, erasing roughly $60 billion from the company’s market value following the underwhelming announcement of its highly anticipated robotaxis that failed to impress investors.
The electric vehicle manufacturer’s stock plummeted to $217 at the close of the market after CEO Elon Musk revealed a much-hyped self-driving car at an event in Hollywood. Since the start of the year, the stock price has declined by about 12%.
Musk stated that Tesla would commence the development of a fully autonomous CyberCab by 2026 priced under $30,000 and introduced a van capable of transporting 20 people autonomously within the city, aiming to revolutionize parking.
Prior to the event, he tweeted: “And within 50 years all transportation will be fully autonomous.”
During the presentation, he mentioned that parking would no longer be necessary in the city.
However, analysts were disappointed by the lack of specifics at the event concerning Tesla’s projects and other developments. Musk has a track record of making ambitious projections about future products that often fail to materialize within set deadlines or at all.
After newsletter promotion
Royal Bank of Canada analyst Tom Narayan remarked in an investor note that the event lacked specifics. He stated, “Investors we spoke to during the event felt that the event glossed over actual figures and timelines.”
“These shortcomings are common at Tesla events, which appear to focus more on promoting and branding Tesla’s vision rather than providing concrete data for analysis. Consequently, we anticipate a decline in the stock price.”
Narayan also mentioned that some investors were anticipating a preview of an affordable car equipped with pedals and a steering wheel set to be launched next year, but no such announcement was made.
Garrett Nelson, an analyst at investment research firm CFRA, expressed disappointment with the revelations about the CyberCab and the lack of information regarding more economical vehicles.
He said: “The event raised numerous questions but was surprisingly brief and resembled more of a controlled demonstration than a comprehensive presentation. We were unsatisfied with the absence of details about [Tesla’s] near-term product plans, which include a more affordable model and the Roadster. Musk previously mentioned on a conference call that production of these models is set for 2025.”
Source: www.theguardian.com
