Analysts and netizens are divided on what the disappointing news will mean for the EV giant.
Elon Musk’s vision for his EV automaker, Tesla (TSLA) , of being “more of an AI and robotics company” has hit a significant roadblock, as a major component of its anticipated future business won’t see the eyes of the public for much longer.
On July 11, a Bloomberg report noted that the manufacturer of cars like the bestselling Model Y crossover and the controversial Cybertruck has delayed the launch of one of its major products.
Unnamed sources within Tesla told the publication that the anticipated Tesla Robotaxi will not be revealed on its original debut date of August 8, which Musk first teased on his social media platform, X, on April 5, 2024.
Instead, the company is pushing the launch event to October, which would give the project teams more time to rework certain elements of the car and build additional prototypes.
Analysts respond
The news of the delay elicited a river of emotions from analysts who took different positions on the future of the brand’s product.
In reaction to the news, noted Tesla Investor Ross Gerber posted on X that it was another “broken promise” from Elon Musk, noting that he and others “knew no one at tesla was prepared or ready to launch a robotaxi,” and that the promise of a Robotaxi was “just like the many promises about cybertruck that never materialized.”
In a quote reply to the post, Wedbush Securities tech analyst Dan Ives replied that the delay “does not move the needle.” In reply, Gerber pointed out to Ives that “no tesla project has ever been on time,” and questioned Tesla’s decision to “announce a product that isn’t ready.”
Skepticism was not solely felt by analysts, with social media followers exchanging their views. On July 12, analysts at Swiss-based investment bank UBS downgraded Tesla stock to a ‘Sell’ rating. In his note, UBS Analyst Joseph Spak said that the company’s inflated price is largely due to future growth opportunities that may be delayed or not happen.
“One would need to see an even larger opportunity to justify a Buy rating,” Spak said. “While TSLA is investing heavily in AI and the tech is making progress, investment is costly, pace of improvement may slow and the payoff is long dated. If market enthusiasm for AI diminishes, this may impact TSLA’s multiple.”
Tesla Cybertruck is seen parked on a street in Brooklyn, New York City, United States of America on July 7th, 2024.
NurPhoto/Getty Images
Skeptics vs. Loyalists
The news of the delay triggered a great deal of conversation on social media, as Tesla fans, skeptics, and loyalists let their feelings and opinions permeate the online echo chamber.
In a post on X, self-proclaimed “Tesla long-term investor” under the handle @Teslaconomics stated that they “don’t care if Tesla delays the Robotaxi unveiling a couple months back,” and that they “much prefer Tesla gets it right.”
But that type of thinking received some pushback. An X user under the handle @kr0mb0pul0smike lambasted “$TSLA simps” in their post for “Enron” Musk “stringing them along for a decade” which also contained a video compilation of clips of Elon Musk promising the robotaxi from 2014 to the present day.
“Your Tesla is never becoming a robotaxi which will make you money. Nor will Tesla have a robocab this decade,” the user said.
Skeptics and Tesla loyalists alike have also voiced their opinions on the matter in the comments section of posts across various Tesla communities on Reddit.
In the comments section of a post linking the original Bloomberg article on the r/TeslaMotors subreddit, Reddit user u/jasoncross00 pointed out that even if the reveal/launch/announcement were delayed, a significant amount of time would have to elapse before an actual Tesla robotaxi hits the streets.
“Honestly, what’s the difference?” asked the Reddit user. “This is just the launch…given how new car launches go (not just updated models) in general, the car won’t be manufactured until 1-2 years from now.”
“Plus no matter when they launch or produce it, they’re going to have to go through a fairly long regulatory approvals process to allow it on the roads with no driver.”
On the subreddit r/RealTesla, a community dedicated to discussion about Tesla “for those who haven’t drank the Elon-Ade,” the comments of a post linking the Bloomberg article produced the viewpoint of user u/ArQ7777, who said that “Elon Musk never intended to launch Robotaxi on 8/8.”
“He set up that day just because he wants his $56 Billion pay package approved. He wants to get his shareholders get excited so he got his bonus,” they said. “Once approved, he no longer needs to launch Robotaxi. Shareholders are duped.”
Tesla, Inc., which trades under TSLA on the NASDAQ is up 3.71% from market open, selling at $249.97 per share at the time of writing.
