Tesla shares are plummeting – now what?

Tesla boss Elon Musk disappointed the stock market with his robotaxi idea. The share lost 8.7 percent. On Friday night, Musk presented an electric car called “Cybercab” that is intended to transport people without a driver. He said the car is expected to go into production in 2026 and will cost less than $30,000 to purchase. There were also dancing robots and Musk demonstrated a self-driving bus for 20 people – but he gave no information about when it might hit the streets.

Analyst Tony Sacconaghi from the financial firm Bernstein Research criticized the Tesla event for not providing enough details that investors had hoped for. Instead, Musk simply reiterated a vision he’s been talking about for nearly a decade, Sacconaghi told CNBC. The show on the premises of the Hollywood studio Warner Bros. did not provide enough concrete information about how Tesla wanted to realize the vision. The bottom line is that the event was simply not impressive, said Sacconaghi. His price target for Tesla shares is $120.

Ryan Brinkman from JPMorgan was also disappointed with the Tesla event. At the same time, he also referred to the very high expectations in the run-up to the event. For Brinkman, the downside risks to the stock currently outweigh the risks. His price target is $130.

Tesla has made very strong progress with the Optimus robot, wrote analyst Mark Delaney from Goldman Sachs. The Robotaxi Cybercab is also attractive. However, some investors are likely to be disappointed by the lack of data on the development of autonomous driving and the robotaxi business plan, as well as the lack of a vehicle in the low price segment. After the recent run, stocks are likely to correct, Delaney said.

Edison Yu from Deutsche Bank is far more optimistic about the future. In contrast to most of these events, the event was more of a big party, wrote analyst Edison Yu in a study available on Friday. Although he is convinced that the electric car manufacturer will be successful in terms of autonomy and humanoid robotics, he was disappointed by the lack of details and the short duration of the “Cybercab” demo drive. He was not surprised that the shares came under pressure this Friday. His price target is $295.

Tesla boss Elon Musk said a few months ago that investors who did not believe that Tesla could create autonomous cars should not hold shares in the electric car manufacturer.