Tesla stock falls 8% after Lackluster robotaxi unveiling disappoints investors

Tesla ( TSLA , FINANCIAL ) stock saw a big drop of 8% on Friday after the electric vehicle maker's much-anticipated Robotaxi event, which left investors less impressed. CEO Elon Musk unveiled a sleek, silver two-seater CyberCab with no steering wheel and pedals at the company's “We, Robot” event in Burbank, California.

The CyberCab is Tesla's latest innovation, a fully autonomous self-taxi. Musk has announced plans to begin production before 2027, with the goal of offering the car to consumers for less than $30,000. However, he did not provide specifics on the production location or timeline, leading investors to doubt

“Investors were expecting detailed roadmaps and near-term opportunities, but the event prioritized Musk's long-term vision of a fully autonomous future,” analysts at Barclays noted. “The lack of concrete plans raises questions about execution and scalability.”

In addition to the CyberCab, Musk also outlined expectations for “unsupervised full self-driving (FSD)” capabilities for existing Model 3 and Model Y vehicles in Texas and California by next year. Currently, Tesla's FSD system operates in a supervised mode, requiring drivers to stay focused and ready to take control at any moment.

The market reacted quickly to the announcements, with Tesla shares trading around $0.40 on Friday, down more than 11% for the year. The company's focus amid growing competition in the electric vehicle and autonomous driving sectors significantly eases investors' concerns about the reality of its ambitious goals.

This article first appeared on GuruFocus.