Oct 12, 2024, 2:30 PM
Oct 11, 2024, 12:32 AM

Tesla's robotaxi reveal disappoints, stock drops 3% overnight

Provocative
Highlights
  • Tesla introduced a two-seater Cybercab and a robovan at an event in Los Angeles on October 10, 2024.
  • The unveiling lacked critical details, including pricing, and the Cybercab is not expected to join the autonomous fleet until 2026.
  • Following the event, Tesla's stock dropped nearly 3%, reflecting investor disappointment and concerns about the company's delivery performance.
Story

On October 10, 2024, Tesla Inc. unveiled its new robotaxi models during an event in Los Angeles, California. The two-seater Cybercab and a larger robovan designed to accommodate around 20 passengers were introduced, but the event lacked crucial details, particularly regarding pricing. CEO Elon Musk indicated that the smaller Cybercab would not be available for the autonomous taxi fleet until 2026, raising concerns about potential delays in the rollout. Investors had anticipated that this unveiling would boost Tesla's stock, which had been struggling following disappointing third-quarter delivery numbers. Tesla reported delivering 462,890 vehicles in the third quarter, a 6.4% increase from the previous year, but below market expectations. The company has also indicated a lower growth rate for deliveries this year without providing specific guidance. Analysts had hoped for the introduction of a more affordable electric vehicle to enhance delivery figures, but the lack of details at the event left many investors feeling uncertain. As a result, Tesla's stock fell nearly 3% in overnight trading on Robinhood, reflecting the market's disappointment with the event and the company's future prospects.

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