By John Meyer, consultant in financial affairs – Eurasia Business News, October 11, 2024. Article No 1258.

Tesla’s stock has experienced a significant decline, erasing approximately $67 billion in market value following the company’s recent Cybercab robotaxi reveal. Originally scheduled for Aug. 8, the event was quietly pushed to October.

Key Details

Stock Drop: On October 11, Tesla shares fell nearly 9%, closing at around $219.35 per share. This drop follows the unveiling of the highly anticipated Cybercab, which failed to meet investor expectations during its debut event on October 10.

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Market Reaction: The stock’s decline reflects broader concerns among analysts regarding Tesla’s growth prospects. Barclays highlighted the lack of immediate updates on the rollout of the Robotaxi service, which is not expected to launch until 2025, while Morgan Stanley pointed out uncertainties surrounding the economics of ride-sharing and advancements in Tesla’s Full Self-Driving (FSD) technology.

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Financial Impact: With this drop, Tesla’s market capitalization is now estimated at approximately $661 billion, a stark contrast to its previous valuation. The stock has also fallen about 11.8% since the beginning of the year and is trading significantly below its 52-week high of $263.26 reached in July 2024.

Investor Sentiment

The disappointment from the Cybercab event has raised questions about Tesla’s innovation trajectory and its ability to maintain investor confidence in a competitive EV market. As analysts predict continued downward pressure on the stock, many are reassessing their investment strategies regarding Tesla amidst these developments

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© Copyright 2024 – Eurasia Business News. Article no. 1258.