At the recent "We, Robot" event held at Warner Bros. Discovery Studio in California, Tesla finally unveiled its long-anticipated Cybercab Robotaxi, a futuristic, autonomous vehicle that may set new trends in the automotive world. Alongside the Cybercab, Tesla also showcased a new Robovan and an upgraded version of its humanoid robot, Optimus. While these developments are exciting, the question remains: Will they be enough to meet investor expectations and boost Tesla's stock prices?
A Revolutionary Cybercab Robotaxi
The Cybercab Robotaxi, designed without steering wheels or pedals, represents Tesla's ambitious leap toward full autonomy. Priced under $30,000 (€27,000), this electric vehicle promises low operational costs of around $0.20 (€0.18) per mile, making it accessible to consumers. The car’s advanced AI-based navigation system relies solely on cameras, emphasizing Tesla’s commitment to pioneering Full-Self Driving (FSD) technology. Mass production is expected to begin in 2026, with potential earlier rollouts.
Musk also teased that unsupervised FSD could debut as early as next year in Texas and California using Model 3 and Model Y vehicles. While this hints at progress, the timeline for fully autonomous vehicles on public roads remains uncertain, subject to regulatory approval.
Robovan and Optimus: More Innovations
In addition to the Cybercab, Tesla introduced the Robovan, an autonomous vehicle capable of seating up to 20 people. This could serve as an essential tool for public transportation and commercial use. Tesla also unveiled an upgraded version of Optimus, their humanoid robot, which could potentially be deployed in factories by the end of 2024, adding another layer to Tesla’s diverse innovation strategy.
Challenges for Tesla’s Growth
Despite these technological advancements, investor sentiment remains cautious. Tesla is still grappling with declining demand for electric vehicles (EVs), increased competition from Chinese automakers, and year-over-year declines in car sales. The company delivered 462,890 vehicles in Q3 2024, falling short of its forecasted 470,000 vehicles. This shortfall raises concerns about Tesla’s ability to meet expectations, potentially marking its first-ever annual decline in vehicle sales.
Moreover, Tesla's Robotaxi efforts lag behind competitors like General Motors’ Cruise and Alphabet-backed Waymo, both of which already have autonomous vehicles operating on public roads. Investors are left wondering whether Tesla’s Robotaxi can catch up in the race for autonomous vehicle dominance.
Investor Concerns and Share Performance
Tesla’s share performance has been lackluster, down 4% year-to-date, contrasting sharply with a 21% gain in the S&P 500. Despite a 70% recovery from its April 2024 low, the company’s shares remain overvalued with a Price-to-Earnings (PE) ratio of 67, higher than both Nvidia and Meta. Tesla’s third-quarter earnings, set to be reported on October 23, 2024, are expected to show a 13.2% annual decline in profits.
While the unveiling of the Cybercab Robotaxi, Robovan, and Optimus signals Tesla’s ongoing innovation, investors remain skeptical. The lack of groundbreaking news at the event did little to instill confidence that Tesla’s stock will rise in the near future.
Source: Euronews
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