Jim Cramer talks Tesla's 'disappointing' robotaxi event

Summary

Tesla's recent 'We Robot' event unveiled the much-anticipated robot taxi, yet the market reacted negatively, with shares dropping nearly 9%. Despite showcasing innovative hardware, including a humanoid robot and a new bus-like vehicle, details on self-driving technology and production timelines were lacking, raising doubts about Tesla's future in the EV market. Analysts expressed disappointment over the absence of concrete plans, especially given fierce competition from companies like Google. Ultimately, while Elon Musk's vision remains compelling, many investors are advised to remain cautious and stay on the sidelines due to uncertainty surrounding Tesla's ambitious goals.

Takeaways

• 🚗 Tesla unveiled its long-awaited robot taxi at the 'We Robot' event, but the stock declined by 8.8% following the announcement.
• 📉 Demand for electric vehicles is slowing, leading to significant challenges for Tesla as it faces increased competition, especially from Chinese manufacturers.
• 📅 Tesla reported a disappointing quarter, with delivery shrinkage in the first two quarters of the year, only seeing an increase in the third quarter due to comparisons with last year’s production.
• 🌟 The robot taxi is a sleek two-seater coupe priced under $30,000, designed for small business owners to buy fleets.
• 🚌 Tesla introduced the 'Robo Van', a new bus-like vehicle that can carry up to 20 people and transport goods.
• 🤖 The humanoid robot, Optimus, showcased at the event can perform a variety of tasks and is expected to cost between $20,000 and $30,000.
• 📉 Despite the impressive visuals, analysts criticized the lack of substantial details about self-driving technology and the rollout timeline.
• 🚦 Elon Musk projected that production for the robot taxi could start around 2026, which did not inspire confidence among investors.
• 🛑 Analysts expressed concerns about the challenges of getting local governments on board with autonomous vehicle technology, especially after accidents.
• ⚖️ The market reaction indicated skepticism; Tesla's stock drop coincided with Uber reaching all-time highs, as confidence in the readiness of autonomous taxis remains low.

Q & A

What was the primary focus of Tesla's recent We Robot event?

The primary focus of Tesla's We Robot event was the unveiling of new products, including the Robotaxi, Robo Fan, and humanoid robots.

How did Tesla's stock react after the We Robot event?

Tesla's stock declined by 8.8% following the We Robot event, indicating a negative market reaction.

What challenges is Tesla currently facing in the electric vehicle market?

Tesla is facing declining demand for electric vehicles and increasing competition, particularly from manufacturers in China.

What are some features of the Robotaxi showcased at the event?

The Robotaxi is a sleek two-seater vehicle expected to cost less than $30,000, making it affordable for small business owners to purchase fleets.

What did Elon Musk say about the humanoid robots during the event?

Elon Musk claimed that the humanoid robots could perform a variety of tasks, such as teaching, babysitting, mowing lawns, and serving drinks.

What concerns did analysts express regarding Tesla's self-driving technology?

Analysts were concerned about the lack of specific details regarding Tesla's self-driving technology and its rollout, especially the need for local government approvals.

When does Elon Musk anticipate production of the Robotaxi to begin?

Elon Musk indicated that production of the Robotaxi is expected to start around 2026, showing a cautious timeline for its release.

How did the market react to Uber after the We Robot event?

Following the We Robot event, Uber's stock reached all-time highs, suggesting that the market is not confident in the imminent rollout of Tesla's autonomous vehicles.

What did Adam Jonas from Morgan Stanley express about the event?

Adam Jonas expressed disappointment over the lack of details provided during the event, noting that it was challenging to get self-driving technology to work effectively.

What is the recommendation for investors regarding Tesla's stock after the event?

The recommendation for investors is to stay on the sidelines for now due to the lack of specifics and clarity about Tesla's future plans in the autonomous vehicle market.