Tesla shares fell nearly 9% on Friday, wiping approximately $60bn (£45bn) from the company's market value, after the long-awaited unveiling of its self-driving 'Cybercab' left investors underwhelmed. The stock closed at $217, down roughly 12% year-to-date.
At a Hollywood event, CEO Elon Musk revealed the fully autonomous Cybercab, which he said would start production by 2026 at a price under $30,000. He also showcased a van capable of transporting 20 people autonomously, claiming it would transform cities by turning car parks into parks. Before the event, Musk tweeted that all transport would be fully autonomous within 50 years.
However, analysts criticised the lack of concrete details. Tom Narayan of Royal Bank of Canada noted the event was 'light of real numbers and timelines,' focusing on branding rather than providing data for financial models. He expected shares to trade lower. Garrett Nelson of CFRA expressed disappointment over the absence of information about a more affordable vehicle, which Musk had previously indicated would launch in 2025.
The event also failed to address investor hopes for a teaser about a lower-priced car with pedals and a steering wheel, due next year. Musk has a history of making ambitious predictions that often miss deadlines or fail to materialise.
