Tesla lost $99 billion in a day after Elon Musk’s disappointing unveiling of his autonomous robotaxi. However, the company later reported profits, boosting investor confidence.
Tesla, a leading electric vehicle company, has had a stock market shock: a $99 billion loss in market value in a single day.
The crash came as the company revealed its new vision for the future of mobility, focusing on autonomous robotaxis, an ambitious project that Elon Musk had announced as the next big thing for Tesla. However, the market reaction was negative, with investors weighing on the company, sending the share price down.
The stock price crash was surprising because of the speed with which it happened and the significant amount of market capitalization that was burned.
Musk’s new car, a two-seater driverless car, did not convince Wall Street analysts, who were disappointed by the lack of details and the perception that Tesla was focusing too much on marketing rather than real progress in the autonomous driving sector.
The announcement of the robotaxi, rather than exciting, left investors perplexed, who chose to sell en masse, sending a clear signal to the market and showing that the road to total automation could be more torturous than expected for Tesla.
How Tesla lost $99 billion in one day
The loss of value was triggered by the collapse of shares, which went from $238.77 to $217.80.
The unveiling of the autonomous robotaxi, a vehicle designed to serve as both a personal transport vehicle and a self-driving taxi, has drawn criticism mainly for a “lack of substance”. Analysts have pointed out that Tesla has offered few technical details and too many promises without concrete guarantees, making the project appear still too far from being realized.
Despite the potential to transform urban mobility, Tesla’s robotaxi has appeared to industry experts as a “taxi without teeth”, capable of fascinating only in terms of branding and not enough in practice. This has been seen as a misstep, especially in a competitive and rapidly developing market.
In response, shares of rivals Uber and Lyft rose, reflecting how Tesla’s announcement was seen as a concession to its direct competitors in the ride-sharing sector.
2024 has proved to be a difficult year for Tesla, with the company already forced to reduce the prices of some of its most popular models, such as the Model Y and the Model 3, to counter competition from new electric vehicle brands, especially Chinese ones such as Leapmotor, Xpeng and Zeekr.
Increased competition has eroded Tesla’s advantage, making the robotaxi announcement appear more strategic than truly innovative. The market reaction therefore reflects growing uncertainty among investors about Tesla’s ability to maintain its leading position.
Tesla, what are the signs of recovery?
Despite this sudden decline, Tesla showed signs of recovery in the following weeks. The company released quarterly results that reassured investors, with sales expected to increase by +20-30% for next year. These positive numbers restored confidence in the market, causing the share price to rise by +12%, increasing the market value by about 120.5 billion dollars. It was a significant rebound that allowed Tesla to offset its initial losses. This improvement showed that, despite the disappointments of the robotaxi, the company still has strong growth potential and solid support from investors.
However, it remains clear that Tesla will have to face significant challenges to realize its vision of self-driving and maintain its dominance in the electric vehicle market. Competition is now fierce, and brands such as Smart, Deepal, and Zeekr are becoming increasingly threatening to Tesla’s leadership position, especially in the Chinese market. To face the pressure, Musk seems determined to continue to innovate and carry forward ambitious projects, even at the cost of having to review strategies and objectives.
The challenge for Tesla will be to maintain investor confidence high, continuing to pursue its vision of an autonomous and sustainable future, but better balancing promises and tangible results.
Original article published on Money.it Italy 2024-10-27 11:45:00. Original title: Così Tesla ha perso $99 miliardi in un giorno
