Tesla's Value Drops $60 Billion After Investors Fail to Praise Self-Driving 'Cybercab' | Automotive industry

Tesla shares fell 8%, shaving around $60bn (£45bn) off the company's value, after the long-awaited unveiling of the so-called robotaxi failed to excite investors.

Shares of the electric car maker fell to $219.40 in early trading Friday after an event in Hollywood where Chief Executive Elon Musk unveiled a much-touted self-driving vehicle.

Musk said the company would begin building the fully autonomous “Cybercab” by 2026, priced at less than $30,000, and unveiled a van he said would be capable of transporting 20 people around the city autonomously – which he believes would transform cities into parks by turning parking lots into parks.

Before the event, he tweeted: “And all transportation will be completely autonomous within 50 years.”

During the presentation, he wrote that parking spaces in cities are no longer needed.

However, analysts said there were few details at the event and also expressed disappointment at the lack of details on other Tesla projects. Musk has made big predictions about upcoming products in the past and failed to implement them within the time frame he set or at all.

Tom Narayan, an analyst at Royal Bank of Canada, said in a note to investors that the event lacked details. “Investors we spoke to at the event were of the opinion that the event was about real numbers and timelines,” he wrote.

“These usually take place at Tesla events. This seemed to focus on branding and marketing Tesla's vision rather than providing concrete numbers that we could model. Therefore, we would expect the shares to trade lower.”

Narayan added that some investors were hoping for a taste of a cheaper vehicle with pedals and a steering wheel that would be released next year. However, none took place.

Garrett Nelson, an analyst at investment research firm CFRA, said he was disappointed by the Cybercab revelation and the lack of details about a cheaper vehicle.

He wrote: “The event raised many questions, was surprisingly short and was more of a controlled demonstration than a presentation.” We were disappointed by the lack of detail on (Tesla's) near-term product roadmap, e.g. B. the cheaper model and the Roadster, both of which Musk said in his last conference call would reach first production in 2025.”