Cybercab Disappointment Weighs on Tesla Stock
Tesla shares fell nearly 3% in pre-market trading to $365 after the "Cybercab" launch event in Austin fell short of investor expectations, amid uncertainty regarding expansion plans and timelines.
Pressure mounted after the U.S. National Highway Traffic Safety Administration (NHTSA) opened a formal review of approximately 1,000 Cybercab vehicles to assess their compliance with federal safety standards—particularly given their lack of a steering wheel, pedals, and mirrors.
The event also drew criticism for a lack of detail and the unveiling of a limited number of vehicles compared to competitors; Tesla has only about 45 Cybercabs in Texas, whereas Waymo operates nearly 1,000 vehicles.
The decline appeared specific to Tesla rather than the broader market, as the S&P 500 remained stable and the Nasdaq rose slightly. Nevertheless, StoneX maintained a "Buy" rating and a price target of $475, while Barclays kept a "Hold" rating.
