Key Takeaways
- Tesla shares sank Friday, the morning after its “Cybercab” robotaxi was unveiled at its “We, Robot” event.
- The electric vehicle maker also revealed a larger “Robovan” and showcased its Optimus humanoid robot.
- Analysts had said prior to the event that they expected Tesla could announce a lower-cost vehicle to be released next year, but the company did not mention one.
Tesla (TSLA) shares stumbled Friday morning as markets appeared to be initially unimpressed with the electric vehicle (EV) maker’s “We, Robot” event last night, which included the unveiling of autonomous taxi and van models.
The autonomous taxi, called the “Cybercab,” will go into production by 2026 once Tesla has approval from regulators for its full self-driving software, which Chief Executive Officer (CEO) Elon Musk said should be rolled out in California and Texas by next year for its Model 3 and Model Y.
‘We, Robot’ Product Unveilings May Have Been Less Than Expected
At the event, Musk also revealed the “Robovan,” a larger autonomous vehicle designed to carry groups of people or cargo, along with showcasing Tesla’s Optimus humanoid robot, with some helping serve drinks, dance, and perform other functions. The van and robot have not received official release dates, but Musk had said previously that Optimus would perform tasks in Tesla factories next year and would be sold to other companies in 2026.
One factor pressuring Tesla’s stock could be that analysts had said they expected the company could reveal a lower-cost vehicle that could be released next year. Wedbush analysts said in a Friday note that the lack of a “Model 2” announcement is the “elephant in the room this morning,” as they also acknowledged that Musk and Tesla “ideally” should have spent more time on details like how the robotaxi network will operate.
However, the Wedbush analysts said they would “be buyers on any weakness this morning” as they left the “We, Robot” event “more bullish on the Tesla story.” Bank of America analysts affirmed their “buy” rating on Tesla’s stock, saying the “Robotaxi event lived up to the hype.”
Tesla stock has been trending lower since third-quarter deliveries data released last week beat estimates but perhaps by not as wide a margin as investors had hoped. The EV maker faces another catalyst for its shares later this month, when it reports Q3 earnings Oct. 23.
Tesla shares, which recently fell back into negative territory for the year, were down more than 8% at $218.81 soon after markets opened Friday.
UPDATE—This story has been updated with the latest share price information and Bank of America analysts’ comments.
