Tesla Shares Drop After Cybercab Launch as Analysts Express Concern
Tesla shares fell more than 6% on Friday following the launch of its new Cybercab, a driverless electric vehicle. The decline marked one of Tesla's worst days since July and erased gains from the previous session when it had risen nearly 5%. The event in Austin lacked public livestreaming and detailed updates about fleet size or rollout plans, leading to skepticism among Wall Street analysts. Analysts noted that while some remain bullish on Tesla’s long-term potential with its robotaxi service, others were underwhelmed by the limited information provided. RBC Capital Markets called it a departure from Tesla's usual theatrical reveals and questioned whether the event would serve as a significant catalyst for growth. JPMorgan highlighted minimal fleet deployment in Texas at this stage but expects gradual expansion over several years. Despite mixed reactions, some analysts like Goldman Sachs emphasized that if Cybercab meets cost targets of $20K to $30K per unit, it could offer Tesla an attractive competitive edge with a lower operating cost compared to other autonomous vehicles. RBC and Baird maintained higher price targets based on long-term growth projections.
Tickers: $TSLA
Topics: Cybercab launch robotaxi service stock price decline Tesla Wall Street reaction