Tesla shares plunge 8% after lackluster Robotaxi unveiling disappoints investors

Shares of Tesla (TSLA, Financial) posted a sharp 8% decline on Friday after the electric vehicle maker's highly anticipated robotaxi event left investors unimpressed. CEO Elon Musk introduced the Cybercab, a sleek, silver two-seater without steering wheels or pedals, at the company's “We, Robot” event in Burbank, California.

The Cybercab is Tesla's latest innovation, a fully autonomous self-taxi. Musk announced plans to begin production before 2027, aiming to offer the vehicle to consumers at a price under $30,000. However, he did not provide any information about production locations or timelines, which led to skepticism among investors

“Investors expected detailed roadmaps and near-term opportunities, but the event highlighted Musk's long-term vision of a fully autonomous future,” analysts at Barclays noted. “The lack of concrete plans raises questions about implementation and scalability.”

In addition to the Cybercab, Musk highlighted expectations for “unsupervised full self-driving (FSD)” in Texas and California by next year for existing Model 3 and Model Y vehicles. Currently, Tesla's FSD system operates in a supervised mode, which requires drivers to remain alert and be ready to take control at any time.

The market reacted quickly to the announcements, with Tesla shares trading at around 0.40 on Friday, down more than 11% on the year. The significant decline underscores investors' concerns about the company's direction and the practicality of its ambitious goals amid increasing competition in electric vehicles and autonomous driving.

This article first appeared on GuruFocus.