Tesla revealed its “Cybercab” on October 10, 2024, in Burbank, California. Following the unveiling, Tesla’s shares decreased by nearly 9% after the much-anticipated robotaxi event did not meet investors’ expectations. CEO Elon Musk presented the Cybercab, a self-driving concept car designed without steering wheels or pedals, during the “We, Robot” event. He also reiterated the company’s goals to develop a fleet of autonomous vehicles and robots.
Musk indicated that the production of the Cybercab might begin by 2027, although no details were provided regarding the manufacturing locations. He stated that the Tesla Cybercab would be available for purchase at a price below $30,000. Musk also mentioned that Tesla plans to initiate “unsupervised FSD” in Texas and California by next year for the Model 3 and Model Y vehicles. Full Self-Driving (FSD) is Tesla’s advanced driver assistance system, currently offered in a supervised version.
Despite technological advancements, human oversight remains necessary as drivers must be ready to take control at any moment. Tesla’s shares closed on Friday at $217.80, marking a 12% decline year-to-date and a 17% drop over the past 12 months.
Musk also announced the development of an autonomous, electric Robovan capable of carrying up to 20 passengers or transporting goods, targeting solutions for high-density transport scenarios like sports teams. Analysts from Jeffries described the event as underwhelming, while Barclays analysts noted the lack of immediate opportunities, focusing instead on Musk’s vision for an autonomous future. They highlighted the event’s emphasis on the overarching vision rather than providing updates or data on the progress of the FSD system.
Piper Sandler analysts remarked that most trading-focused entities might feel underwhelmed by the robotaxi unveiling. Morgan Stanley analysts commented that Musk did not effectively position Tesla as an artificial intelligence company during the event. They criticized the lack of details about improvements to the FSD system and potential collaboration with xAI, Musk’s AI company. The analysts expressed disappointment with the contents of the presentation and anticipated pressure on Tesla shares post-event.
It remains apparent that deploying a self-driving Tesla fleet on public roads will take years, with regulatory scrutiny over safety features forthcoming. Paull Miller, an analyst at Forrester, expressed skepticism regarding Musk’s promise of a $30,000 Cybercab becoming available soon. He explained that achieving such pricing would be challenging without external subsidies or incurring losses per vehicle.
Alphabet’s Waymo, which launched a robotaxi service for the public since June, is among the few companies successfully deploying self-driving cars on public roads.
