Tesla Slips in Premarket Trading as Analysts Highlight Lack of Details at “Cybercab” Robotaxi Event

Tesla shares experienced a decline in premarket trading on Friday following the company’s announcement of the highly anticipated “Cybercab” robotaxi. However, analysts noted that CEO Elon Musk did not address several key questions regarding the technology.

Musk stated that the Cybercab, which features no steering wheel or pedals and accommodates two passengers, is expected to enter production before 2027 with a price tag of under $30,000. He arrived at the Los Angeles event in a Cybercab but acknowledged that regulatory approvals are still necessary for the service to become operational.

“It will save lives,” Musk claimed, emphasizing that autonomous vehicles could be “ten times” safer than human drivers.

In addition to the Cybercab, Tesla introduced a prototype for the “Robovan,” which can carry up to 20 passengers, and showcased an updated version of its humanoid robot named “Optimus.”

Tesla’s expansion into artificial intelligence and autonomous driving comes as the company faces a decline in sales, largely due to increased competition in China and sluggish demand in Western markets. Analysts have indicated that annual deliveries could see their first-ever drop in 2024.

As Tesla works to keep up with other autonomous driving companies, such as Waymo and Cruise, which provide robotaxi services in certain U.S. cities, investor sentiment has been mixed. Since announcing “robotaxi day” in April, Tesla’s stock has surged, with Musk suggesting that new offerings could elevate the company’s valuation up to $5 trillion from its current approximate value of $748 billion.

Yet, analysts expressed some disappointment regarding the lack of specific timelines and figures presented during the event. “Typically, we expect more concrete details at Tesla events. This one seemed to prioritize branding and marketing over providing measurable data,” noted analysts at RBC Capital Markets.