Tesla’s highly-anticipated robotaxi reveal has led to a drop in its stock price, causing concern among investors. The electric vehicle company’s shares were down by 7.5% during morning trading on Friday, following a lackluster response to the Cybercab self-driving car prototype unveiled by CEO Elon Musk.
Investors were disappointed to learn that Tesla’s focus has shifted away from the planned Model 2, a $25,000 electric car, to prioritize the production of the Cybercab. While Musk mentioned that the Cybercab is expected to be available for consumers at less than $30,000, the timeline for production is uncertain, with Musk suggesting it may not be until 2026 or later.
This delay in production, coupled with the lack of updates on other promised models, has created uncertainty among investors. Gene Munster, managing partner at Deepwater Asset Management, pointed out that investors are eagerly awaiting improvements in margins, delivery growth rates, and the progress of the full self-driving (FSD) technology.
Musk’s failure to address the timeline for a more affordable model, which was previously expected to be available by late 2025 or mid-2025, has also contributed to the stock’s decline. Munster emphasized that while the cheaper car is still in development, Tesla may be holding off on promoting it to avoid cannibalizing sales of the existing Model 3 and Model Y vehicles.
As investors navigate these uncertainties surrounding Tesla’s product roadmap and production timelines, it is crucial to stay informed and closely monitor the company’s progress. For the latest updates and expert analysis on Tesla and other investment opportunities, stay connected with Extreme Investor Network through our website and social media channels. Follow us on Facebook, Twitter, and Instagram for real-time updates and insights to help you make informed investment decisions.