Tesla's value dropped by $60 billion following 'glowing' unveiling of Cybercab robotaxi. Here's why

Tesla saw a sharp drop in its market value on Friday, losing nearly $60 billion after the unveiling of its highly anticipated Cybercab robotaxi failed to impress investors.

The electric car giant’s stock tumbled by almost 9 per cent, closing at $217, following a Hollywood event where CEO Elon Musk showcased the futuristic, fully autonomous vehicle. This drop adds to Tesla’s struggles this year, with the stock down around 12 per cent year-to-date.

At the event, Musk revealed plans to begin production of the Cybercab in 2026, promising a price point under $30,000. He also introduced a large van, claiming it could transport 20 passengers autonomously and could potentially reshape urban areas by eliminating the need for car parks.

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Musk envisioned a future where car parks could be transformed into green spaces as cities shift towards full autonomy in transportation.

However, despite the big promises, many investors and analysts left the event feeling unsatisfied. Analysts pointed out that the presentation lacked crucial details, particularly on Tesla’s production timelines and technical specifications for the Cybercab.

This absence of solid numbers left investors uncertain about the feasibility of Tesla’s ambitious plans, resulting in a sell-off.

Many analyst expected more specific data, such as timelines and production numbers, which are typically provided at Tesla’s events. Instead, the showcase focused heavily on branding and promoting Tesla’s broader vision, leaving the investment community with little to work with. He added that this lack of concrete information likely contributed to the sharp decline in Tesla’s stock.

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Adding to the disappointment was the absence of news about a more affordable vehicle, which some investors had hoped to hear about.

Rumours had been circulating about a new Tesla car with traditional features like pedals and a steering wheel, set for launch next year, but no updates were provided. The absence of this news only further dampened the mood among investors.

Garrett Nelson, an analyst at CFRA, expressed dissatisfaction with the Cybercab reveal, stating that the event raised more questions than it answered. He noted that the brief presentation felt more like a controlled demonstration than a comprehensive update on Tesla’s near-term product plans.

Investors were particularly hoping for updates on two upcoming models — the more affordable vehicle and the long-awaited Roadster — both of which Musk previously suggested would enter production in 2025. However, neither received any mention, leaving investors feeling in the dark.

As a result of the underwhelming presentation and lack of concrete details, Tesla’s stock took a significant hit, wiping billions from its market value and raising doubts about the company’s near-term future.