Tesla’s Stocktwits Sentiment Falls To 1-Year Low After Robotaxi Launch Delay, UBS Downgrade

Retail sentiment for Tesla hit its lowest level in one year after a report indicated the company is planning to delay the launch of its much-awaited Robotaxi to later this year in October from August earlier. The Stocktwits sentiment dipped into the bearish territory (17/100) from the neutral zone supported by high message volumes.

Following the report, shares of the electric vehicle-maker plunged nearly 8% on Thursday to fall below the $250 mark. A downgrade by UBS also added pressure on the stock which was trading in the red during Friday’s pre-market session.

The idea behind Robotaxi is to create a self-driving car that would shuttle passengers between destinations. Stocktwits users are expressing concerns about the potential delay in the launch of the vehicle, comparing it with similar delays that plagued the launch of Tesla’s Cybertruck. 

Meanwhile, UBS analysts reportedly downgraded the stock to ‘Sell’ from ‘Neutral’ on concerns that the company’s shares have risen “too much, too soon” led by optimism over its artificial intelligence plans. The firm, however, raised its target price on the stock to $197 from $147. Given that Tesla is currently trading near the $237 mark, the price target implies a 17% potential decline from current levels.

Despite the negative news, a section of the investment community appears to be positive on the stock. Gene Munster, managing partner and co-founder at Deepwater Asset Management, tweeted that even if the delay occurs, it doesn’t change anything. “Reason why the stock went down 7% is because it's a reminder that in the world of Tesla things take longer than expected. While this will dampen the recent rally in shares, the shift in timing doesn't change anything. Tesla is still best positioned to lead in an autonomous future, which will unlock higher margins,” Munster asserted in his tweet.

Tesla has raised prices of its Model 3 cars in European nations including Germany, the Netherlands and Spain by nearly €1,500 euros ($1,622) to counter the tariffs imposed by the European Union. On Thursday, the EV-maker launched a new variant of its Model 3 long-range vehicle at $42,490.