Tesla boss Elon Musk has disappointed the stock market with his robotaxi idea. The share lost 8.7 percent. On Friday night, Musk unveiled an electric car called “Cybercab” that is intended to transport people without a driver. He said the car is expected to go into production in 2026 and will cost less than $30,000 to buy. There were also dancing robots and Musk showed off a self-driving bus for 20 people – but gave no information on when it would hit the streets.
Analyst Tony Sacconaghi from the financial firm Bernstein Research criticized Tesla’s exit for not providing enough data that investors were hoping for. Instead, Musk reiterated a vision he’s been talking about for nearly a decade, Sacconaghi told CNBC. The show did not put on the premises of the Hollywood studio Warner Bros. The bottom line is that the event wasn’t great, Sacconaghi said. His price target for Tesla shares is $120.
JPMorgan’s Ryan Brinkman was also disappointed with Tesla’s departure. At the same time, he also referred to the very high expectations before the event. For Brinkman, the risks to the stock currently outweigh the risks. Its price target is $130.
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Tesla Gigafactory Austin
Tesla has made very strong progress with the robot Optimus, writes analyst Mark Delaney from Goldman Sachs The Cybercab Robotaxi is also attractive. However, some investors are likely to be disappointed by the lack of details regarding the development of autonomous driving and the robotaxi business plan, as well as the lack of a vehicle in the low price segment. After the recent run, stocks are likely to correct, Delaney said.
Deutsche Bank’s Edison Yu is much more optimistic about the future. In contrast to most of these events, the event was more of a big party, wrote analyst Edison Yu in a study available on Friday. Although the electric car manufacturer is confident of success in terms of autonomy and humanoid robotics, it was disappointed by the lack of details and the short duration of the “Cybercab” demo drive. It was no surprise that the shares came under pressure last Friday. Its price target is $295.
Tesla boss Elon Musk said a few months ago that investors who did not believe Tesla could create autonomous cars should not hold shares in the electric car manufacturer.
Tesla’s departure disappointed many analysts and investors. Many questions remained unanswered: Elon Musk did not answer when the Cybercab would be delivered, to whom it would be sold and what the business model would look like. The reaction was clear: the shares lost 8.7 percent to $217.80 on Friday.
On the other hand, shares in ride-hailing companies Uber and Lyft got a boost after Tesla’s presentation. Investors should wait and see with Tesla. The correction is likely to continue. The share finds support at $216.67. The line runs 100 days here. Should this level fall, the next support would be the 200-day line at $202.33.
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