Wall Street's Response to Tesla's "We, Robot" Event

Tesla's highly anticipated robotaxi event in Burbank, California, resulted in a dip in the company's shares in premarket trading. The event featured the unveiling of the Cybercab robotaxi, the Robovan concept, and the latest iteration of the humanoid robot, Optimus. Following the event, several top Wall Street analysts shared their perspectives, lauding the innovative products but noting a lack of technical details.

Analysts' Take on the Event

Goldman analysts Mark Delaney and Will Bryant, who attended the event, praised Tesla's progress with the Optimus humanoid robot and the appealing design of the Cybercab. However, they also noted the absence of data on Full Self Driving (FSD) performance, limited details on the robotaxi business plan, and the lack of a lower-cost consumer vehicle unveil, which could disappoint some market participants.

Cybercab Unveiling

Tesla introduced a two-seat Cybercab vehicle devoid of a steering wheel or pedals/controls and featuring winged doors. The company also displayed a Robovan capable of carrying up to 20 people or transporting goods. Tesla anticipates launching unsupervised FSD robotaxi operations in Texas and California next year with its currently available models and aims to be in production with the Cybercab by 2026 or 2027. Tesla expects that autonomous vehicles can offer 5X or even 10X higher utilization. The company also believes the average operating cost of its Cybercab over time will be approximately $0.20 per mile and may be priced at around $0.30-$0.40 per mile, including taxes and other costs. The Cybercab is expected to cost around $30K or less.

Optimus Unveiling

The analysts were impressed with the progress made with Optimus, particularly given Tesla's position just a few years ago. The robots demonstrated lifelike movements and interacted via voice with attendees. The analysts predict that Optimus will become an increasingly significant part of Tesla's story.

Wall Street's Mixed Reactions

Other Wall Street analysts also shared their thoughts following the event, with many noting that Elon Musk and Tesla were light on details. Some analysts were disappointed that Tesla did not unveil a lower-cost vehicle that could be manufactured on existing factory lines. Others pointed out that Tesla will likely need to add steering wheels and pedals to scale its robotaxi production by 2026.

Market Reaction

The market reaction to Tesla's event was underwhelming, with shares down 6% in premarket trading in NYC. For the past two years, shares have traded sideways, facing resistance above $250.

Bottom Line

While Tesla's "We, Robot" event showcased impressive innovations, the lack of technical details and specifics about the business plan left some investors and analysts wanting more. The market's lukewarm response indicates that while Tesla continues to push boundaries, there is still a demand for more concrete information. What are your thoughts on Tesla's latest unveilings? Do you think they will revolutionize transportation as we know it? Share your thoughts and discuss with your friends. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.