Tesla's (TSLA, Financial) stock experienced a significant drop of 8.78%, closing at $217.80, resulting in a market value loss of $67 billion. This decline also impacted CEO Elon Musk's personal wealth, which decreased by $15 billion.
Analysts at Jefferies expressed concerns over Musk's presentation at a recent event, noting the absence of verifiable evidence for progress in Tesla's autonomous driving technology. They highlighted the challenge in assessing the feasibility of Musk's outlined goals, as there is no precedent for achieving higher-level autonomous driving using solely vision-based methods.
Regarding Tesla's business model, Musk briefly mentioned the potential for Robotaxi to create a new business model by allowing one person to manage a large fleet. However, he provided scant details on this and avoided addressing critical issues, such as handling regulatory challenges or maintaining Cybercab vehicles in case of breakdowns.
Investors were particularly disappointed with Tesla's failure to introduce a more affordable electric vehicle, rumored to be the Model 2 with a $25,000 price point, to rejuvenate its aging product lineup. Garrett Nelson, an analyst at CFRA Research, expressed dissatisfaction with the lack of clarity on Tesla's upcoming product roadmap, stating that the event did little to improve the uncertain mid-term profit outlook.
