Tesla Tumbles to 7th on WSB as Robot Dreams Clash with Market Skepticism
1min read In the latest WSB ranking, Tesla (TSLA) has slipped to 7th place, dropping six positions from the previous day. The company's stock rose by 0.19%, marking a two-day gain of 0.81%.
On October 10th, at the "We, Robots" event, Tesla unveiled its new autonomous taxi Cybercab, autonomous bus Robovan, and the third generation humanoid robot, Optimus. These robots showcased impressive capabilities, such as walking steadily, performing dances, and engaging in casual conversations, even playing rock-paper-scissors with humans. When a spectator revealed it was their birthday, the robots organized a birthday song, showing remarkable integration between hardware and sensory-decision systems.
Elon Musk, Tesla's CEO, highlighted the potential for these humanoid robots to serve as teachers, caregivers, or even companions, with a projected cost of $20,000 to $30,000 each. This demonstration has rekindled discussions about a future where robots could significantly alleviate human labor, drawing us closer to sci-fi realities.
Tesla also gained local environmental approval in Berlin to expand its factory. This is part of a broader plan to double its production capacity to one million units per year, potentially becoming Germany’s largest car manufacturer. However, this expansion faces local resistance, as recent referendums opposed cutting down trees for factory expansion, although these votes are non-binding.
In a contrasting development, Tesla's stock dropped by 9% from its 52-week high following a recent event where the lack of a competitive autonomous taxi strategy and core business struggles were highlighted. Analysts question Tesla’s viability without significant improvements in its full self-driving (FSD) technology, especially as competitors like Google's Waymo are already successfully operating FSD taxis.
This skepticism was exacerbated by the absence of substantial evidence or timelines regarding their progress in autonomous driving capabilities, raising doubts about the feasibility of Tesla's plans. Furthermore, Tesla has yet to resolve 'phantom braking' issues, causing additional concerns about its FSD reliability.
While Tesla’s automotive and energy storage segments show promise, challenges from established competitors and fluctuating market demands cast shadows over its ambition. The stock market response reflects these concerns, highlighting the need for Tesla to deliver concrete proof of its strategic objectives and technological advancements to regain investor trust.