Tesla shares drop 6% in premarket after Cybercab robotaxi reveal fails to impress

Shares of electric vehicle maker Tesla tumbled Friday after the company’s long-awaited robotaxi event — where CEO Elon Musk unveiled the firm’s Cybercab self-driving concept car — failed to impress investors.
Tesla stock was down 5.8% as of 6:33 a.m. ET in premarket trading on Friday.

Musk revealed Tesla’s Cybercab concept vehicle — a low, silver two-seater, has no steering wheels or pedals — on Thursday night. The plan is for the car to be capable of driving itself autonomously when it launches.

In reaction to the Thursday event, analysts at Barclays said that the revelations had failed to highlight any near-term opportunities for Tesla, instead prioritizing Musk’s vision for a fully autonomous driving future.

Morgan Stanley, meanwhile, suggested that Musk failed to make the case that Tesla is an AI company during the event. The bank’s analysts noted that Musk didn’t mention any details on improvements to Tesla’s FSD system, nor did the billionaire go into detail regarding rumored plans of a tie-up between Tesla and xAI, Musk’s AI company. Musk has previously denied such reports.