From dancing robots to an Art Deco Robovan, Tesla delivered another exciting event that shoots for the Brave New Future.
Tesla’s “We, Robot” event on October 10, 2024, in Burbank, California, was intended to showcase groundbreaking innovations, but it left investors and analysts divided, with enthusiasm tempered by concerns over execution.
The event revealed a range of futuristic products but lacked the detail needed to bolster confidence in their practical implementation.
Meet the Cybercab
The highlight of the event was Tesla’s unveiling of the Cybercab, a two-seater robotaxi designed to operate without a steering wheel or pedals, marking the company’s ambitious foray into autonomous urban transport. Priced under $30,000, with production slated for 2026, Elon Musk promised the Cybercab would bring down mass transit costs.
Source: Tesla
Alongside the Cybercab, Tesla also introduced the Robovan, a larger autonomous vehicle capable of seating 20 passengers or transporting goods, aimed at reshaping public and commercial transport. The Robovan features striking Art-Deco inspired design. Elon Musk said “the future should look like the future.”
Source: Tesla
In addition to these autonomous vehicles, Musk showcased Optimus, Tesla’s humanoid robot, which performed basic tasks like serving drinks and dancing. The robot, which Musk described as potentially the company’s biggest product yet, is expected to be priced between $20,000 and $30,000. However, no specific timeline for production was offered, leaving many questions unanswered.
Source: Tesla
Investor Reactions
The market response to the event was swift and severe. Tesla’s stock plummeted nearly 9%, wiping out $67 billion in market value, making it the worst-performing stock on the S&P 500 that day. Investors were left disappointed by the absence of specific details regarding Tesla’s autonomous fleet technology. Despite this, Tesla retained its position as the world’s most valuable car company with a $696 billion market capitalization.
Source: Google
Bernstein analyst Toni Sacconaghi expressed his dissatisfaction, calling the event “underwhelming” and criticizing the lack of new product details and timelines. Many experts echoed his concerns, noting that while the vision was grand, the practicality and timeline of these innovations remained murky.
Expert Opinions
On the positive side, some analysts still see enormous potential. Dan Ives from Wedbush described Tesla as one of the most undervalued AI companies, projecting its autonomous technologies could unlock $1 trillion in value over the coming years. He hailed the event as a “game-changer” for autonomous transport if Tesla can execute its plans effectively.
However, Morgan Stanley analysts tempered the excitement, pointing out that while the robots exhibited greater fluidity than previous models, they were still under human control. The demonstration was more about showcasing future potential than current capability.
Jefferies analyst John Colantuoni was even more critical, describing the event as “toothless” and noting that Tesla failed to provide verifiable evidence of technological progress. He predicted that competitors like Uber and Waymo would benefit, with both companies’ stocks rising following the event.
The Bigger Picture
Elon Musk’s long-standing ambition for fully autonomous vehicles remains clouded by repeated delays and missed targets. His previous prediction of having 1 million robotaxis on the road by 2020 has not materialized, leading to skepticism about the new 2026 timeline. Investors were also disappointed by the lack of an affordable electric vehicle, often referred to as Model 2, which was expected to refresh Tesla’s product lineup at a lower price point
Tesla’s “We, Robot” event painted a bold picture of the future, but concerns about execution, regulation, and technology persist.
While the innovations presented have the potential to revolutionize transport and robotics, the lack of concrete progress and timelines left some unconvinced. Tesla’s vision remains enticing, but the road to its realization remains long.
