Everyone is on top of Elon Musk for his vision, and lofty expectations that always seem to miss the mark. He still gets there, his goals are achieved, but his time estimates are wrong most often. Still, I would not bet against the man.
Tesla shares took a hit, dropping about 8% on Thursday, following a report by Bloomberg that the company is postponing the debut of its highly anticipated Robotaxi. Originally slated for an August 8 unveiling, the launch has been pushed to October to allow more time for the development of prototypes.
🗓 Thursday July 11, 2024
📉 Tesla stock closes out the trading day at $241.03 per share, down 8.44%
📊 Volume: 216,872,275$TSLA $SPY $QQQ pic.twitter.com/lyF55g527B
— Tesla Stock Bot (@dailyTeslaChart) July 11, 2024
This setback comes after an 11-day surge in Tesla’s stock, triggered by a report of higher-than-expected vehicle deliveries in the second quarter, which initially reversed the year’s losses. However, the delay in the Robotaxi’s launch has sent Tesla’s shares back into the red for 2024. This downturn is compounded by broader challenges the company faces, including significant layoffs, declining sales, and heightened competition, particularly from Chinese automakers.
Elon Musk, Tesla’s CEO, has long promised a shift towards fully autonomous vehicles, asserting as early as 2015 that Tesla cars would achieve full autonomy within three years. Despite repeated assurances, including a claim in 2019 that Tesla would have a million robotaxi-ready vehicles on the road by 2020, the company has yet to fulfill these promises. In contrast, competitors like Alphabet’s Waymo and GM’s Cruise have advanced in the development of autonomous driving technology.
According to FT, Tesla’s share of US #EV sales has fallen below 50% for the first time.
Unsurprisingly, we also learn today that #Tesla is delaying the launch of its #robotaxi later than Musk’s 8/8 schedule.
Shares of Tesla closed down more than 8% today following the news,… pic.twitter.com/T9LsfCadE1
— BlackBull Markets (@blackbullforex) July 11, 2024
Despite these hurdles, Musk remains committed to Tesla’s focus on autonomous vehicle technology, envisioning a fleet of robotaxis that could generate revenue for their owners and form the backbone of a driverless transport network. This vision was reiterated in April during a lackluster first-quarter earnings call, with Musk emphasizing the importance of autonomy to Tesla’s future.
$TSLA Tesla is down over 8.5% today
Down $31/Share from the top 👀
🔴🔴🔴🔴🔴🔴🔴🔴 pic.twitter.com/FLlOGA6mf5
— HaiKhuu (@HaiKhuuTrading) July 11, 2024
Tesla’s history of unveiling new technologies, like the fully electric Tesla Semi truck in 2017—which only started deliveries in December 2022—suggests that the company’s unveilings do not necessarily indicate imminent commercial availability. The upcoming second-quarter earnings report later this month is expected to provide further insights into Tesla’s current standing and future directions.
Major Points:
- Launch Postponed: Tesla has delayed the unveiling of its Robotaxi from August 8 to October to allow more time for prototype development.
- Stock Impact: Following the announcement, Tesla shares fell by 8%, erasing gains from an 11-day rally sparked by strong second-quarter delivery reports.
- Persistent Challenges: The delay adds to Tesla’s difficulties in 2024, including layoffs, declining sales, and increasing competition, especially from Chinese EV manufacturers.
- Unfulfilled Promises: Despite Elon Musk’s repeated assurances since 2015 of achieving full autonomy and deploying a fleet of robotaxis, Tesla has yet to deliver on these promises, lagging behind competitors like Waymo and Cruise.
- Vision Reaffirmed: Despite setbacks, Musk reiterated Tesla’s commitment to developing autonomous vehicles and a robotaxi network during the first-quarter earnings call, underscoring autonomy as crucial to Tesla’s future strategy.
James Kravitz – Reprinted with permission of Whatfinger News
