‘Musk is trying to compete in the Tour de France on a tricycle’: Tesla cyber cab launch falls flat
Investors unconvinced on Elon Musk's newly released cyber cab
Tesla’s unveiling of its self-driving cyber cab at Warner Bros Studios left investors unimpressed, with analysts underwhelmed by what they’d seen.
Despite the spectacle at the We, Robot event, doubts lingered around the company’s ability to deliver on its promises to continue to dominate investor sentiment.
AJ Bell commented, “Tesla’s Cybercab launch failed to drive any interest from investors”, citing the company’s history of over-promising and delaying product launches.
The lack of substantial details on the economics and feasibility of scaling the robotaxi fleet further dampened excitement.
Dan O’Dowd, founder of the Dawn project, criticised the demonstration, comparing Tesla’s progress to competitors in the robotaxi market.
He highlighted that Tesla’s geofenced, low-speed demo was far from the real-world performance of rivals like Waymo, which currently transports 100,000 paying customers weekly in major U.S cities.
Tesla’s new robotaxi: Glimpse into the future or 1950s Disneyland?
“For all the hype that Elon musk puts behind his Tesla Full Self-driving, it does not work. The latest version of full self-driving travels 71 miles between critical disengagements, in contrast to Waymo’s 17.311 miles”, he said, “Elon Musk is trying to compete in the Tour de France on a tricycle.”
He also argued that Tesla’s latest event was more of a ‘Hollywood production’ rather than a viable technology showcase, asking “does this look more like the future or 1950s Disneyland?”
Blair Couper, investment director at abrdn, added that the event lacked essential details regarding unit economics, regulatory progress, and fleet operation efficiency, which are crucial for investors to assess Tesla’s competitiveness in the autonomous vehicle market.
Couper noted that while Tesla hinted at a sub $30,000 price point for its robotaxi, significant hurdles remain in reducing costs, ensuring high fleet utilisation, and advancing regulatory approval.
Despite Tesla’s shares rallying over 50 per cent since the event was announced in April, many investors remain cautious.
Tesla’s record third-quarter shipments from its Shanghai factory offered a positive prelude to the event, but the robotaxi launch failed to sustain that momentum.
The market continues to wait for concrete evidence of Tesla’s ability to deliver a commercially viable self-driving fleet, as scepticism over repeated delays and technological challenges persists.
This news follows a week after Tesla’s third quarter shares had reportedly fell south of expectations.
Investors are closely watching for future updates, including the long awaited Tesla model 2.
This comes as UK sales at Tesla, the luxury car maker run by Elon Musk, have reversed from their previous record high. The Manchester-headquartered division reported a revenue of £2.47bn for 2023, down from the £2.83bn it achieved in 2022.
