One of Tesla’s Biggest Bulls ‘Disappointed’ After Robotaxi Event
Tesla’s much-anticipated Robotaxi event left one of its most ardent supporters on Wall Street underwhelmed. Adam Jonas, one of Tesla’s top bulls from Morgan Stanley, expressed disappointment after the event, citing a lack of concrete details surrounding the autonomous taxi plans. The presentation of Tesla’s futuristic Cybercab, while visually impressive, lacked critical insights into the regulatory approval timeline, financials, and competitive strategy, leaving key questions unanswered.
Jonas and other analysts were expecting to hear more about the company’s Full Self-Driving (FSD) technology, particularly updates on safety data, miles driven without disengagements, and a clearer roadmap for approval from regulatory authorities. While CEO Elon Musk showed off the Cybercab and reiterated Tesla’s commitment to autonomy, the lack of transparency on when these robotaxis will hit the streets concerned some investors.
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Market Response and Analyst Reactions
Tesla’s stock, which initially rallied leading up to the event, dropped by as much as 9% following the presentation. The drop reflected growing skepticism from both analysts and investors regarding the company’s autonomous vehicle strategy and its ability to disrupt the ride-sharing industry.
Despite Jonas’ reservations, some analysts still maintain a bullish stance. Dan Ives of Wedbush Securities emphasized that the unveiling of the Cybercab itself was a significant step forward, marking tangible progress in Tesla’s autonomous vehicle ambitions. However, he acknowledged that without more details on FSD advancements and monetization, questions linger about how quickly Tesla can execute its vision for autonomous mobility.
Challenges for Tesla's Robotaxi Ambitions
While Tesla has long touted robotaxis as part of its grand vision for the future, it faces steep competition from companies like Waymo and Cruise, which have already launched autonomous ride-hailing services in key cities. The absence of key information during the event about Tesla’s competitive edge in this space raised concerns about the company’s ability to meet its ambitious targets.
Moreover, Tesla’s Full Self-Driving software has faced scrutiny from regulators in the past, and analysts like Jonas were looking for more clarity on how Tesla plans to overcome these hurdles. Without clear regulatory guidance and more performance data, analysts like Toni Sacconaghi from Bernstein remain skeptical about whether Tesla can deliver on its robotaxi promises within the projected timeframes.
Looking Ahead
As Tesla’s next earnings report approaches, investors and analysts will be watching closely to see if the company provides more concrete updates on its robotaxi program and FSD development. Despite the market’s mixed reaction to the Robotaxi event, Tesla’s overall ambitions in AI and autonomous technology continue to drive interest, but it will need to offer more clarity to regain investor confidence.
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One of Tesla’s Biggest Bulls ‘Disappointed’ After Robotaxi Event Tesla’s much-anticipated Robotaxi event left one of its most ardent supporters