tesla company (NASDAQ:TSLA) stock fell 10% after Friday’s low-profile robotaxi unveiling event failed to wow Wall Street.
what happened: Tesla CEO Elon Musk on Friday unveiled its vision for the future, including a two-seater CyberCab that operates without human intervention. Notably, these vehicles are designed without a steering wheel or foot pedals.
According to the report by According to Business Insider, Wall Street was unimpressed, especially considering the robotaxi service that Waymo already operates. Analysts drew similarities between the CyberCab demo and slow, short amusement park rides and criticized the controlled environment.
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Tesla stock closed Thursday at $238.77, according to the report. Shares opened Friday at $220.13, fell to a low of $214.38 in early trading, and closed the day at $217.80.
Analysts also emphasized that details regarding Tesla’s execution strategy are unclear. toni sacconaghiBernstein analysts commented on the lack of details, noting that Tesla needs to provide further evidence to investors.
Despite Musk’s predicted timeline for launching a robotaxi network by 2026 or 2027, Sacconaghi said technical and regulatory hurdles have raised questions about the potential for significant returns. expressed.
At the same time, Uber stock rose 9% as investors believe Tesla’s proposed robotaxi network is unlikely to disrupt Uber’s core business.
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why is it important:The muted response to Tesla’s robotaxi announcement event highlights the challenges the company faces in convincing investors of its vision for the future.
The skepticism expressed by analysts and the subsequent drop in Tesla’s stock price highlight the importance of providing detailed plans and demonstrating the feasibility of such ambitious projects.
Moreover, the rise in Uber stock suggests that despite advances in self-driving car technology, investors still see value in traditional ride-hailing services.
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This article Tesla stock plummets after robotaxi presentation is less than impressive originally appeared Benzinga.com
