Following the launch of Tesla’s ‘We, Robot’ Event, which showcased the humanoid Optimus robot and Robotaxi, that many investors and analysts were eagerly waiting for, many of them were disappointed by the lack of concrete details and immediate plans for Tesla’s robotaxis.
The event, held on Thursday night, was supposed to show big improvements in Tesla’s self-driving car technology, but it didn’t meet expectations, according to analysts. This is reported to have caused Tesla’s stock to drop nearly 9% on Friday, closing at $217.80.
According to Yahoo Finance, Thomas Martin, a senior portfolio manager at GLOBALT Investments, commented on the market’s reaction, noting the different outcomes for Tesla and Uber. “Both Tesla stock and Uber reacted the way you would have expected given the robo-day from Tesla,” Martin said.
While Elon Musk’s company stock fell due to unmet expectations, Uber’s shares went up as investors shifted their focus. Martin explained that if Tesla had shown a clear plan for its self-driving cars, it could have been a big threat to Uber in the long run. However, the lack of detailed information gave Uber an advantage.
Analysts from Jeffries, Barclays, and Piper Sandler shared similar views. They pointed out that there were no updates on Tesla’s Full Self-Driving (FSD) system and that the event lacked detailed information.
Barclays analysts emphasized that the event “prioritized Elon Musk’s vision for a fully autonomous future rather than providing actionable insights for the present.” This left many investors wanting more immediate progress and clarity.
Morgan Stanley analysts also criticized the event. They felt that Tesla did not effectively present itself as a leader in artificial intelligence. They mentioned that Musk did not discuss any potential collaboration between Tesla and his AI company, xAI.
The analysts found the event lacking in several important areas, such as updates on FSD progress, economic aspects of ride-sharing, and strategies for bringing the product to market. The general consensus among analysts was that Tesla’s Robotaxi event did not meet the high expectations set by the market.
In contrast, Uber’s market position improved as a result of the event. According to Yahoo, Kevin Paffrath, a financial adviser, mentioned that many are frustrated that Tesla isn’t really working to make these electric vehicles affordable and this makes Uber’s strong position in the rideshare market more noticeable.
Overall, Tesla’s robotaxi event did not deliver the significant updates and progress that investors were hoping for. As a result, Tesla’s stock is expected to face pressure in the coming weeks, while Uber stands to benefit from the delay in Tesla’s self-driving car plans.
While Tesla’s robotaxi might not have brought about the desired awe, the human-looking robot called Optimus stole the day. Optimus can converse fluently and perform many tasks both on the home front and in work-related places like factories. The robot is expected to be available for sale next year, 2025, and is estimated to cost between $20,000 to $30,000.
Below are videos of Tesla’s Optimus robot in action: