Tesla drops over 6% intraday as Cybercab update falls short of expectations

Tesla (TSLA.US) shares fell more than 6% during intraday trading on Friday after the company's highly anticipated Cybercab autonomous taxi update failed to meet Wall Street expectations, raising investor concerns about its ability to compete with Waymo in the US robotaxi market. On Thursday, Tesla held its Cybercab event in Austin, Texas, which was invite-only and not livestreamed, with CEO Elon Musk also absent. The company stated that users can experience the Cybercab driverless service through the Tesla Robotaxi hailing app in a limited area in Austin. Analysts from RBC Capital Markets commented that Tesla revealed only limited new information at the event, with key issues such as pricing, production pace, and regulatory approvals still unresolved. Wells Fargo analysts also described the Cybercab launch event as "disappointing," noting that Tesla's Austin robotaxi service is facing early operational issues. In addition, the US National Highway Traffic Safety Administration has launched a "review inquiry" to confirm whether the Cybercab meets federal safety standards and completes the necessary safety certification. Previously, Tesla's share price rose 5.4% the day before the event.