Tesla's stock decline on Friday was triggered by a lackluster update regarding its Cybercab, which has been in production since April. The Cybercab, a two-seat robotaxi without traditional driving controls, was showcased at a private event in Austin, Texas, where CEO Elon Musk did not appear.
Analysts from RBC Capital Markets noted that the company provided limited new information, leaving critical questions about pricing, production, and regulatory approvals unanswered. Additionally, the National Highway Traffic Safety Administration has begun an audit to ensure the Cybercab meets safety standards.
Wells Fargo analysts highlighted early operational issues with the robotaxi service, citing user complaints about routing errors and delays. This disappointing reception follows a 5.4% increase in Tesla's stock the day before the event, indicating that investor expectations were not met