Analysts React to Tesla’s Anticipated Robotaxi Event

Tesla shares experienced a decline in premarket trading on Friday following the reveal of its much-anticipated “Cybercab” robotaxi. However, analysts noted that CEO Elon Musk failed to address several key questions regarding the technology.

Musk announced that the Cybercab, designed without a steering wheel or pedals and capable of seating two people, is expected to enter production by 2027 and will be priced below $30,000. He demonstrated the vehicle by arriving at the event in Los Angeles in a Cybercab but acknowledged that the service must navigate various regulatory challenges before launch.

In addition to the Cybercab, Tesla showcased a prototype for a new autonomous vehicle known as the “Robovan,” which can accommodate up to 20 passengers, alongside an updated version of its humanoid robot, named “Optimus.”

Analysts offered mixed reactions to the presentation:

“While the event showcased a vision for the future at Warner Brothers Studio, it did not provide substantial new insights. Tesla continues to lead the discourse on autonomous driving, but concrete timelines and details remain vague. We believe a realistic timeline for these advancements is likely farther out than portrayed.” – UBS

“Many attendees expressed that the event lacked specific figures and timelines typically expected from Tesla presentations. This event seemed more focused on branding than providing solid information for modeling future performance. Consequently, we anticipate a decline in stock prices. We had previously indicated that a 5% drop would align with expectations; however, a 10% drop could indicate disappointment.” – RBC Capital Markets

“Notably, there were no near-term updates presented. Tesla did not unveil its low-cost model slated for production in the first half of 2025, which many anticipated. Additionally, updates regarding the progress of full self-driving capabilities were absent, as were any data showcasing improvements that might assure the public of Tesla’s advancements in this area.” – Barclays

“The event did not provide verifiable evidence of progress toward Level 3 autonomous technology, complicating our ability to evaluate the feasibility of the goals set forth, especially since no precedent exists for achieving higher autonomy solely through a vision-based approach.” – Jefferies

“Looking closely, the design of the Cybercab is impressive and lays the groundwork for a significant future growth driver for Tesla. We believe the Cybercab presents a substantial opportunity to enhance Tesla’s profits and margins in the coming years as production ramps up.” – Wedbush

“Musk indicated that the Cybercab could be in production by 2026 or early 2027; however, one should note that Tesla has a history of struggling to meet its timelines. Furthermore, the regulatory process for commercial robotaxi services has been lengthy, and Musk has consistently been overly optimistic about full self-driving deployment.” – Bernstein