After Tesla's much-anticipated "Robotaxi Day" event, the company's shares saw a sharp decline of 8.78 percent, resulting in a nearly $70 billion loss in the company's market value.
At the conference, Tesla failed to provide details on key issues such as approach to regulatory barriers, pricing standards, plans for a global market rollout, and the handling of safety incidents.
"Elon Musk has not presented any 'verifiable evidence' of advancements in Tesla's autonomous driving technology," said an analyst from American investment bank Jefferies. "This makes it difficult for us to assess the feasibility of the goals outlined by Musk at the event, especially considering there's no precedent for achieving a higher level of autonomous driving relying solely on visual methods."
Additionally, Musk skipped over expectations of how a two-seater robotaxi would serve the needs of families headed to a restaurant or to the airport, or if he expected these to appeal only to a niche clientele.
Tesla's robotaxi is unveiled at "We, Robot" in Los Angeles, California, U.S., October 10, 2024. /CFP
"When you think of a cab, you think of something that's going to carry more than two people," said Jonathan Elfalan, vehicle testing director for the automotive website Edmunds.com. "Making this a two-seat-only car is very perplexing."
Waymo's former CEO John Krafcik said Tesla's design looked "more playful than serious," and that the two-door configuration posed challenges for older passengers and those with disabilities.
Moreover, the influx of numerous two-seater vehicles on the roads could potentially exacerbate traffic congestion. Although Musk presented a cutting-edge robovan with a capacity for up to 20 passengers, details regarding its production timeline and pricing have not been disclosed.
(With input from Reuters. Cover via CFP.)