Tesla’s stock plummeted nearly 9% on Friday, erasing around $60 billion from the company’s market value after its highly anticipated robotaxi unveiling left investors unimpressed. The share price tumbled to $217 at market close, adding to a rough year for the electric vehicle (EV) maker, whose stock has fallen approximately 12% year-to-date.
The drop followed a flashy event in Hollywood, where Tesla CEO Elon Musk introduced the “Cybercab,” a fully autonomous vehicle that he claims will be a game-changer for urban transportation. Musk’s vision includes a driverless van, capable of transporting up to 20 people, and the possibility of eliminating car parks in favor of green spaces in cities. However, the event’s lack of concrete details and timelines regarding production left investors and analysts disappointed, casting doubt on Tesla’s ambitious projections.
Musk’s Grand Vision, But Light on Details
During the event, Musk emphasized his futuristic vision for autonomous transportation, predicting a revolution in how cities function and are designed. He claimed that Tesla’s robotaxi fleet, to be priced under $30,000, could begin production by 2026. As part of this vision, he suggested that parking spaces could be turned into parks, as autonomous vehicles would no longer need dedicated parking areas.
Before the event, Musk took to social media, tweeting, “And all transport will be fully autonomous within 50 years,” signaling his long-term expectations for the industry. Yet, the presentation left more questions than answers for investors, particularly those eager for details on Tesla’s immediate plans, including timelines for upcoming products and updates on existing projects.
Investors Left Disappointed
Despite the bold promises, analysts said the event was short on specifics, especially regarding Tesla’s near-term product lineup. Tom Narayan, an analyst at Royal Bank of Canada, remarked that the presentation was more focused on branding Tesla’s vision rather than providing the hard data investors typically expect from such events.
“In the conversations we had with investors at the event, the consensus was that it lacked real numbers and timelines,” Narayan wrote in a note to investors. “This one seemed more like a marketing showcase than a technical or financial update, which left a lot of unanswered questions.” He also noted that this was unusual for Tesla events, where investors usually receive more concrete projections and product updates.
Garrett Nelson, an analyst at CFRA, echoed these sentiments. Nelson expressed disappointment over the absence of details surrounding Tesla’s more affordable vehicle, which many expected to be teased at the event. Investors had hoped for updates on a lower-priced model with pedals and a steering wheel, anticipated to launch in 2025, as well as an update on the long-delayed Roadster. Neither was mentioned during the showcase.
“The event raised a lot of questions, was surprisingly brief, and felt more like a controlled demonstration rather than a substantive product presentation,” Nelson wrote. “We were particularly disappointed by the lack of information regarding Tesla’s near-term roadmap.”
Stock Setback Amid High Expectations
Musk’s ambitious vision has often been met with skepticism, given his history of making bold projections about Tesla’s products without always delivering within the timelines he sets. This event seemed to follow a similar pattern, leaving investors cautious about the company’s direction in the coming years.
Tesla’s stock, which has already faced pressure this year, suffered one of its steepest single-day drops on Friday. The 9% plunge reflected investor concerns about the company’s ability to execute on its ambitious promises, especially with rising competition in the EV and autonomous vehicle markets.
While Tesla continues to be a market leader in electric vehicles, the mixed reactions from the event underscore the growing pressure on the company to provide clear, actionable plans to maintain investor confidence. As the company looks to 2026 for the launch of its autonomous Cybercab, questions remain about whether Tesla can stay ahead in the fast-evolving auto industry.
