Tesla shares ( NASDAQ:TSLA ) fell in premarket U.S. trading on Friday after the group unveiled its long-awaited “Cybercab” robotic taxi, although analysts pointed out that Chief Executive Elon Musk gave few answers to critical questions surrounding from technology.
The Cybercab model, which has no steering wheel or pedals and has two seats, will likely go into production before 2027 and be available for less than $30,000, Musk said. However, the tech mogul, who entered the event in Los Angeles riding in a Cybercab, noted that the service would still have to overcome several regulatory hurdles.
“It will save lives,” Musk said, adding that autonomous vehicles will be “ten times” safer than human drivers.
Tesla also unveiled a prototype for its ‘Robovan’, an autonomous vehicle that can seat up to 20 people, as well as an updated model of its humanoid robot, called ‘Optimus’.
Tesla’s shift toward artificial intelligence and autonomous driving comes as the company struggles with a steady decline in sales stemming from increased competition in China’s top market and sluggish sales in the West. Annual deliveries are at risk of falling for the first time in history in 2024, analysts note.
Meanwhile, Tesla is trying to keep pace with self-driving companies like Alphabet subsidiary Waymo and General Motors-owned Cruise, both of which offer robotaxi services in select US cities.
Tesla shares have soared since it first announced a “robotaxis day” in April, as Musk estimated that the new offerings could boost the company’s valuation to as much as $5 trillion from its current level of just over from $748 billion.
However, analysts noted some frustration among investors that the event did not include firm timelines or specific numbers.
“These usually come at Tesla events. She appeared to focus on branding and marketing Tesla’s vision, rather than providing concrete numbers to shape them,” RBC Capital Markets analysts said in a note to clients.
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Reference;
Kanowsky, S. (2024) Tesla slips premarket, analysts flag lack of details at ‘Cybercab’ robotaxi event By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/stock-market-news/tesla-slips-premarket-analysts-flag-lack-of-details-at-cybercab-robotaxi-event-3659016 (Accessed: 11 October 2024).
