Tesla’s stock saw a modest uptick on Tuesday, rising 0.2% to $219.57, as investors and analysts weighed in on the company’s recent robotaxi updates. This news comes from a Barron’s article by Al Root, detailing the market’s response to Tesla’s “Cybercab” robotaxi unveiling event in Hollywood on October 10.

Wall Street’s Skepticism

Coming into Tuesday’s trading, Tesla shares had dropped about 8% since the robotaxi event. The majority opinion on Wall Street was that the event didn’t provide enough details to reassure investors about Tesla’s timeline for launching a self-driving cab service. Despite offering demo rides in prototype Cybercabs, Tesla’s plans to launch the service in late 2025 using Model 3 and Y vehicles, with Cybercab production starting in late 2026, left many wanting more concrete information.

ARK Invest’s Optimism

Not all reactions were negative, though. Tasha Keeney, ARK Invest’s director of investment analysis and institutional strategy, found encouragement in CEO Elon Musk’s comments about robotaxi costs. Musk claimed Tesla’s robotaxi costs could be as low as 20 cents a mile, which is “roughly 60% to 70% lower than owning and operating a car.”

Keeney also expressed confidence in Tesla’s ability to meet its entry-to-service timeline, with Musk aiming to start the service in 2025.

She highlighted Tesla’s advantage, stating, “Tesla’s extensive data lake, sourced from customer vehicles, has given it a significant edge over competitors like Waymo which lack data scale and manufacturing capacity.”

Industry Expert’s Positive Take

Sandy Munro, founder of automotive engineering consultancy Munro & Associates, offered a glowing review of the robotaxi event.

“No steering wheels, no pedals, no nothing,” Munro said in a YouTube video. “This is like being chauffeured, but in the front seat instead of the rear seat… This has been absolutely brilliant.”

Munro was particularly impressed with his demo drive around the Hollywood lot and sees long-term potential in the technology. He believes Tesla’s Optimus robot will address what he calls the “3 Ds” in the automotive world: “dirty, dangerous, and drudgery.”

Tesla’s Current Performance

Despite the positive notes from some quarters, Tesla’s stock performance has been lackluster this year. Through Tuesday’s trading, Tesla stock was down about 12% year-to-date. Along with the recent Robotaxi Day drop, falling EV sales have weighed on investor sentiment. Tesla delivered just under 1.3 million EVs in the first three quarters of 2024, down about 2% year over year.

EVXL’s Take

While Tesla’s robotaxi plans have sparked debate, they underscore the company’s continued push to revolutionize transportation. As we’ve seen in our recent coverage of Tesla’s innovations, the company consistently aims to be at the forefront of automotive technology. The mixed reactions to the robotaxi unveiling highlight the challenges and opportunities in the rapidly evolving EV and autonomous driving sectors. As the industry progresses, it’ll be crucial to watch how Tesla balances its ambitious goals with market expectations and regulatory hurdles.

What are your thoughts on Tesla’s robotaxi plans? Share your opinion in the comments below.