Tesla stock dropped around 10% after the robotaxi reveal event on Friday. Elon Musk’s new automaker robotaxi lacks the details of reality that underwhelmed Wall Street.
CFRA analyst Garrett Nelson linked this event to “watching a movie with a lot of plot twists and special effects, and at the end, you’re walking out scratching your head.”
Elon Musk, CEO of Tesla revealed the company’s future vision about robotic taxis. The company introduced the two-seater cyber cabs which are designed to transport persons from one location to another. It is claimed that the car has no steering wheel or foot paddles, and is fully automatic. However, the event did not entirely impress investors and Wall Street.
Moreover, Bernstein analyst Toni Sacconaghi said, “We found Tesla’s Robotaxi event to be underwhelming and stunningly absent on detail.”
He added, “Musk has painted a consistent vision and promise of autonomy for nearly a decade, and we (and investors) had hoped last night’s event would provide a detailed roadmap for getting there. But details were scant to non-existent.”
On the other hand, Ives said in a Friday note, “We strongly disagree with the notion that last night was a disappointment as we would argue the opposite seeing Cybercab with our own eyes. This vehicle is now a reality and not just talk.”
As per a report, Tesla stock fell almost 9% after Friday’s event and 17% down in the last year. Elon Musk has to prove to his investors and other analysts when it comes to the fundamentals of the business.
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