Tesla shares tumble after Elon Musk unveils robotaxi
Tesla shares fell on Friday after the company's Robotaxi event that left investors less than impressed.
CEO Elon Musk introduced the world to two versions of Tesla’s Robotaxi on Thursday evening during an event dubbed "We, Robot": the "Cybercab" sedan and a futuristic-looking "Robovan."
Tesla aims to begin "Cybercab" production before 2027, Musk said, noting he "tend[s] to be a little optimistic with timeframes." The vehicle, slated to cost less than $30,000, has no steering wheel or pedals.
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The other Tesla Robotaxi, the "Robovan," is a van designed to carry more passengers.
"This can carry up to 20 people, and it can also transport goods," Musk said. "You can configure it for goods transport within the city or transport of up to 20 people at a time. The Robovan is what’s going to solve for high density."
Tesla said in an X post it could be "adapted to commercial or personal use – school bus, RV, cargo."
"The design is very impressive up close and this lays the foundation for one of the future growth drivers for Tesla as we believe Cybercab could represent a major opportunity to boost Tesla's overall profits and margins over the next few years as this ramps," Wedbush analysts said in a note.
During the event, Musk also told attendees that Tesla "expects to start fully autonomous unsupervised FSD [full-sell-driving] in Texas and California next year" with its Model 3 and Y vehicles.
Investors, looking for details on Tesla’s Robotaxi plans, had been highly anticipating the event.
In July, the company pushed the event back from its original date in early August. Musk had said in a mid-July X post that he "requested what I think is an important design change to the front, and extra time allows us to show off a few other things."
"His vision is lovely, but somebody has to actualize it," Ross Gerber, a Tesla shareholder and CEO of Gerber Kawasaki Wealth and Investment Management, told Reuters. "For now, for the next 24 months, Tesla has to sell EVs. Why aren't we focused on that?"
Musk has envisioned a "Cybertaxi" and an autonomous ride-hailing system for years.
Tesla’s Optimus robots also got some time in the spotlight at "We, Robot."
Earlier this month, the company reported its production across all its various models totaled nearly 469,800 for the third quarter. Its deliveries, meanwhile, were nearly 462,900.