Tesla finally revealed a prototype of the self-driving Cybercab, which will be self-driving Tesla taxis that passengers can hail through an app.
👉 Background: In 2016, Elon Musk promised the release of self-driving cars in the next two years. Then in 2019, he predicted Tesla would produce operational robotaxis by 2020. It’s 2024 and we self-driving cars are still in their infancy.
👉 What happened: Last last week, Tesla finally revealed a prototype of the self-driving Cybercab, which will be self-driving Tesla taxis that passengers can hail through an app. Musk also unveiled prototypes of the Robovan that can carry 20 people.
👉 What else: But given all the misses in the past, all these reveals were taken with a grain of salt. And Tesla's share price actually declined on the news.
💡When promises no longer excite, results are the only thing that matter.
💡Investors have grown wary of companies making grand announcements without backing them up with tangible outcomes. In fact, Elon Musk has incorrectly predicted the release of his self-driving cars seven times.
💡Over-promising and under-delivering leads to scepticism, and once investors lose confidence, even the most exciting news can fail to boost a company’s stock price. In Tesla's case, its share price dropped by ~1% after the news.
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