Tesla’s Value Declines By $60 Billion After Investors Were Left Underwhelmed By Company’s ‘Cybercab’

Last week, Tesla shares fell by about 9%, $60 billion from the company’s value, after the company unveiled their much anticipated “robotaxi,” which failed to peak investors interests. 

The shares dropped to $217 following the announcement event in Hollywood where chief executive Elon Musk revealed his highly anticipated driverless taxi vehicle. According to reports, the stock price is down about 12% year-to-date. 

At the event, Musk stated that Tesla will officially begin building their “Cybercab” by 2026 and will have a price of less than $30,000. He claimed that the vehicle will be able to transport up to 20 people around town independently and its technology would reshape cities.

“All transport will be fully autonomous within 50 years,” Musk tweeted.

Tech analysts and experts stated that the event, however, lacked a lot of detail and didn’t go over any specifics regarding other Tesla products and projects. Critics also stated that Musk is known for making major proclamations regarding future Tesla endeavors and the timeline in which they’re supposed to come out. Sometimes the products don’t come out at all.  

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“Investors we spoke to at the event thought the event was light of real numbers and timelines,” Tom Narayan, an analyst at Royal Bank of Canada, said to investors according to the Guardian. He also emphasized how the event lacked detail. 

“These typically come at Tesla events. This one seemed focused on branding and marketing Tesla’s vision, rather than giving concrete numbers for us to model out. As such, we would expect shares to trade lower.”

Narayan also said that “some investors were hoping for a teaser about a lower-priced vehicle, with pedals and steering wheel, that would launch next year. However, none was forthcoming.”

Garrett Nelson, an analyst at investment research firm CFRA, said he was “disappointed by the Cybercab reveal and a lack of detail about a cheaper vehicle.”

“The event raised a lot of questions, was surprisingly brief, and was more of a controlled demonstration than a presentation. 

We were disappointed by the lack of detail regarding [Tesla’s] near-term product roadmap, eg, the more affordable model and Roadster, both of which Musk said would achieve first production in 2025 on his last conference call.”