The launch of Tesla’s Cybercab autonomous taxi failed to generate enthusiasm among investors, leading to an 8.78% drop in the company’s stock. The decline appears to be linked to uncertainties surrounding the vehicle’s potential in the market.
One of the major concerns is the design of the Cybercab, which has only two doors. Jonathan Elfalan, director of vehicle testing at Edmunds.com, expressed doubt, stating,
“When you think of a taxi, it’s normal to imagine something that can carry more than two people. Making a car with only two seats is disconcerting.”
Sandeep Rao, a senior researcher at Leverage Shares, echoed similar concerns, pointing out that the market for autonomous taxis with just two seats would likely be quite limited.
JD Power, a leading market research agency, notes that only 2% of car sales in the U.S. (excluding SUVs and pickups) are two-door models, indicating limited demand for such a design in the taxi segment.
Although Tesla also teased a futuristic van with the capacity to carry 20 passengers, there was no additional information provided regarding its launch timeline. Investors were left dissatisfied by the lack of details on the Cybercab’s profitability and any short-term opportunities tied to the vehicle.
Waymo, Tesla’s competitor in the autonomous vehicle space, was also unimpressed. Its CEO, John Krafcik, commented that Tesla’s presentation seemed “more of a joke than anything serious.”
This shift in focus from a compact electric car to autonomous vehicles reflects Tesla’s broader ambitions. Elon Musk has previously stated that this pivot could boost the company’s valuation to $5 trillion, a massive leap from its current valuation of around $700 billion. However, with Cybercab production not slated to begin until 2026, and pricing estimated to be under $30,000, the lack of investor confidence suggests that there are still hurdles to overcome in the rollout of Tesla’s autonomous taxi vision.
