Elon Musk's robotaxi launch fails to wow Wall Street — and leaves Tesla analysts with more questions than answers

Core Insights - Tesla's "We, Robot" event did not meet Wall Street expectations, leading to a significant drop in Tesla's stock price by up to 7% in premarket trading [1][2] Product Developments - During the event, Tesla showcased prototypes of its self-driving car, the Cybercab, along with Optimus humanoid robots and a 20-passenger Robovan [3] - The anticipated more affordable model, which was hinted at during July's earnings call, was not unveiled, raising concerns among analysts [3][4] Analyst Reactions - Gene Munster from Deepwater Asset Management noted the absence of the cheaper model, suggesting Musk may have withheld it to prevent order cancellations [4] - Dan O'Dowd criticized the demonstration of the Cybercab, comparing it to outdated technology and claiming that competitors like Waymo are ahead in autonomous driving [4] - Paul Miller from Forrester expressed skepticism about Tesla's ability to sell the Cybercab for under $30,000 by 2026 or 2027, citing regulatory challenges and the need for external subsidies [5] Market Challenges - Jefferies analysts highlighted Tesla's lack of verifiable progress in autonomous driving and the complexities involved in scaling a robotaxi business, including technology, regulation, and fleet management [6] - Garrett Nelson from CFRA Research mentioned that the event raised numerous questions and expressed disappointment over the lack of detail regarding Tesla's short-term product roadmap [6] Positive Outlook - Despite the criticisms, Wedbush analyst Dan Ives praised the design of the Cybercab and noted that the Optimus project is progressing more rapidly than expected, suggesting that a robotaxi fleet could potentially generate $10 billion in annual revenue at scale [6]