Tesla’s (TSLA) most awaited “We, Robot” event took place last night, with founder and CEO Elon Musk arriving at the event in the all-electric Cybercab. Tesla’s fully autonomous self-driving robotaxi was finally launched yesterday after years of waiting. Musk claims the auto will be able to drive itself without any human intervention. He expects the robotaxi to add trillions of dollars to Tesla’s market capitalization over the years and fuel the company’s future growth. Tesla stock is trending down 5.6% in pre-market trading today, reflecting investor discontent due to the lack of a definitive timeline for product launches.
Musk’s Ambitions Come in Shiny Metal
The Cybercab will be priced at less than $30,000 and is expected to be available for customers before 2027. The robotaxi is a two-door vehicle that comes without a pedal or driving wheel, with a body made of stainless steel. Musk unveiled the prototype of the two-seater robotaxi at the event, yesterday. The Cybercab will presumably cost 20 cents a mile, much cheaper than a normal cab, and will have inductive charging, implying that no plugs are required.
While the company works on manufacturing fully autonomous cybercabs, Tesla’s Model 3 sedan and Model Y sport utility vehicles will be available for offering robotic taxi rides in Texas and California in 2025, Musk added. The CEO said that Tesla boasts 50 EVs as of date.
However, experts have doubts about Tesla’s robotaxi being successful at the first attempt. Several other models like General Motors (GM) Cruise and Alphabet’s (GOOGL) (GOOG) Waymo underwent many failed attempts and halts before running their autonomous taxis on roads. Moreover, stringent regulatory watch and road safety requirements continue to challenge the ambitions of automakers. Moreover, Tesla’s own Fully Self-Driving (FSD) and Autopilot updates on EVs (electric vehicles) have had their share of accidents, investigations, and recalls.
Other Surprise Launches at the Event
Musk surprised fans by unveiling an autonomous electric “Robovan,” which can carry up to 20 people. Musk said Tesla will build this Robovan to solve “high density” issues in cities. However, he did not provide a timeframe for the launch of this model.
Furthermore, Musk showed a video of the Optimus humanoid robot serving drinks and playing board games with children. The Optimus could be priced anywhere between $20,000 and $30,000.
What Is the Prediction for Tesla Stock?
Analysts prefer to remain on the sidelines on Tesla stock owing to slowing EV demand and subdued financial performance. On TipRanks, TSLA stock has a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sell ratings. Also, the average Tesla price target of $207.83 implies 13% downside potential from current levels. Year-to-date, TSLA shares have lost 3.9%.
