Cybercab’s ‘disappointing’ presentation sends Tesla shares down 8.78%

Robotaxi presentation TeslaCybercab did not please the marketswhat’s this Friday Shares of the electric vehicle manufacturer were punished by a fall of 8.78% its value in the absence of details of production and sales plans. Tesla shares closed $20.97 below their opening price in New York amid analyst criticism of a presentation made by Chief Executive Elon Musk on Thursday evening.

Musk, who has been stoking expectations for months by describing the Cybercab as a revolutionary vehicle set to change the world of transportation forever and catapult Tesla’s stock market valuation, was unconvinced by the event, which he himself called a “party.”

Some analysts, such as Colin Langan of Wells Fargo, criticized this Friday that the demonstration that Tesla staged at the Warner Bros. studio. in Los Angeles with the participation of 50 autonomous vehicles, including several Cybercab units, was nothing more than a montage. Others, such as Bernstein analyst Toni Sacconaghi, described the presentation as “disappointing” and lacks detail.

On Thursday, Musk simply noted that the Cybercab would cost between $20,000 and $30,000, that it would go into production “before 2027” and that the batteries would be charged inductively rather than using a plug. But the businessman did not provide details on how Tesla would prepare to increase its production given the strong demand he estimates the Cybercab will have when it has trouble producing cars like the Cybertruck. He also did not indicate how he would overcome the rules and technicalities to get cars without a driver, steering wheel or pedals on the streets of American cities.

“And that’s it? Disappointing lack of details,” exclaimed Adam Jones, an analyst at Morgan Stanley and known as an ardent Tesla supporter. Given the lack of details, the sector quickly remembered that Musk has been wrong in his forecasts for a long timeboth are about prices of Tesla products before their launch date. Musk has it too tendency to exaggerate the technical capabilities of their cars.

Finally, the complete absence during the presentation of any mention of the next generation of low-cost Tesla cars, which some believe should be the company’s main goal, also did not help to dispel doubts about Musk’s plans. And, of course, the last straw was the spectacle during the Cybercab presentation of Optimus robots, which Musk called the “most important product in the history” of mankind, dancing and serving drinks instead of demonstrating their true industrial capabilities. For many, the camel is back.