Tesla’s robotaxi delay
Elon Musk’s vision for his EV automaker, Tesla (TSLA), of being “more of an AI and robotics company” has hit a significant roadblock, as a major component of its anticipated future business won’t see the eyes of the public for much longer.
On July 11, a Bloomberg report noted that the manufacturer of cars like the bestselling Model Y crossover and the controversial Cybertruck has delayed the launch of one of its major products. Unnamed sources within Tesla told the publication that the anticipated Tesla Robotaxi will not be revealed on its original debut date of August 8, which Musk first teased on his social media platform, X, on April 5, 2024. Instead, the company is pushing the launch event to October, which would give the project teams more time to rework certain elements of the car and build additional prototypes.
Market reactions and analyst opinions
The news of the delay elicited a river of emotions from analysts who took different positions on the future of the brand’s product.
In reaction to the news, noted Tesla Investor Ross Gerber posted on X that it was another “broken promise” from Elon Musk, noting that he and others “knew no one at tesla was prepared or ready to launch a robotaxi,” and that the promise of a Robotaxi was “just like many promises about cybertruck that never materialized.”
More “broken” promises. We knew no one at tesla was prepared or ready to launch a robotaxi. Just like many promises about cybertruck that never materialized. There goes $tsla MOMO. 😔
In a quote reply to Gerber’s post, Wedbush Securities tech analyst Dan Ives replied that the delay “does not move the needle.” In reply, Gerber pointed out to Ives that “no tesla project has ever been on time,” and questioned Tesla’s decision to “announce a product that isn’t ready.”
Except that no tesla project has ever been on time. Even close. Why announce a product that isn’t ready?
Skepticism was not solely felt by analysts; social media followers exchanged their views as well. On July 12, analysts at Swiss-based investment bank UBS downgraded Tesla stock to a ‘Sell’ rating. In his note, UBS Analyst Joseph Spak said that the company’s inflated price is largely due to future growth opportunities that may be delayed or not happen.
“One would need to see an even larger opportunity to justify a Buy rating,” Spak said. “While TSLA is investing heavily in AI and tech is making progress, investment is costly; pace of improvement may slow and payoff is long-dated. If market enthusiasm for AI diminishes, this may impact TSLA’s multiple.”
The news triggered extensive conversation on social media as Tesla fans, skeptics, and loyalists let their feelings permeate online discussions.
A self-proclaimed “Tesla long-term investor” under @Teslaconomics stated they “don’t care if Tesla delays Robotaxi unveiling by months,” preferring Tesla gets it right.
This thinking received pushback from user @kr0mb0pul0smike who lambasted “$TSLA simps” for allowing Elon Musk to string them along for years with unfulfilled promises about robotaxis.
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Skeptics and loyalists also voiced opinions across various Reddit communities.
User u/jasoncross00 pointed out in r/TeslaMotors subreddit comments section linking Bloomberg article: even if reveal/launch/announcement were delayed further time would elapse before actual robotaxis hit streets.
“Honestly what’s difference? This just launch…given how new car launches go (not just updated models) in general car won’t be manufactured until 1-2 years from now.”
“Plus no matter when they launch or produce it they’re going through fairly long regulatory approvals process allowing it roads without driver.”
On subreddit r/RealTesla dedicated discussion about Tesla without bias user u/ArQ7777 commented:
“Elon Musk never intended launching Robotaxi on 8/8…set up day because wants Billion pay package approved…get shareholders excited got bonus…once approved no longer needs launching Robotaxi shareholders duped.”
