Tesla shares fall 6% after Cybercab update
Tesla shares fell 6% on September 4 after an update on the driverless Cybercab taxi failed to meet investors’ expectations. The day before, ahead of the company’s event, the automaker’s shares had risen 5.4%, CNBC Top News reports.
Event in Austin
Tesla held an event in Austin, Texas, for invited guests only. It was not publicly broadcast, and the company’s CEO Elon Musk did not appear. Tesla said users of the Tesla Robotaxi app will be able to order a driverless ride in a Cybercab within a designated geofenced area around Austin.
Cybercab is a bronze two-seat robotaxi with butterfly-wing doors and no steering wheel or pedals. Tesla first unveiled the model nearly two years ago; its production has been underway since April. Investors expect the company to become a major player in the US robotaxi market, currently dominated by Alphabet-owned Waymo.
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Analyst assessments and NHTSA inquiry
Analysts at RBC Capital Markets said Tesla provided little new information compared with previous announcements. According to them, questions remain over the Cybercab’s price, production pace and regulatory approvals. At the same time, RBC Capital Markets maintains its buy rating on Tesla shares.
Wells Fargo analysts described the Cybercab launch event as underwhelming and pointed to early problems with Tesla’s robotaxi service in Austin. They drew attention to videos and user complaints about routing errors, missed destinations, as well as long waits or excessively long rides.
On the same day, the US National Highway Traffic Safety Administration initiated an “audit query” procedure to determine whether Tesla properly self-certified the Cybercab for use on public roads and whether the model complies with applicable federal safety standards.
