Tesla Stock Loses Charge After Robotaxi Launch Disappoints Wall Street, But Retail Confidence Revs Up

Shares of Tesla, Inc. (TSLA) fell over 5% in pre-market trading on Friday, extending losses from the previous session after the company’s highly anticipated “Robotaxi” unveiling left Wall Street underwhelmed, though retail investors remained optimistic.

At the event, held at Warner Bros. Studios in Burbank, CA, Tesla CEO Elon Musk revealed the “Cybercab,” a sleek two-seat autonomous sedan, slated for production in 2026 with a target price of under $30,000.

Musk touted the car’s ability to allow passengers to sleep during travel and emphasized that autonomous vehicles are potentially 10 times safer than human-driven ones.

The event also featured an Art Deco-themed “Robovan” concept capable of transporting 20 passengers, along with updates to Tesla’s humanoid robot, Optimus.

Musk highlighted that Tesla’s autonomous technology would rely solely on AI vision, avoiding the need for expensive equipment.

On Stocktwits, retail sentiment among TSLA’s 969,000 followers turned ‘extremely bullish’ early Friday morning, with many suggesting that the dip in Tesla’s stock would be short-lived before a rebound.

However, Wall Street analysts were less enthusiastic.

Wells Fargo called the event “razzle-dazzle” with “little substance,” reiterating its 'Underweight' rating and a $120 price target. The firm criticized the lack of detail around Tesla’s transition from advanced driver-assistance features to full autonomy.

Barclays also noted the event’s light details and said both Tesla bulls and bears might feel “emboldened.” The firm maintained its 'Equal Weight' rating and a $220 price target, suggesting that investors might “sell the news.”

Piper Sandler, though more positive, acknowledged that the event may not sustain Tesla’s recent momentum. While the firm praised the unveiling, it expects a sell-off in the coming weeks, maintaining an 'Overweight' rating with a $310 price target.

Tesla shares are down nearly 4% year-to-date, while the S&P 500 and Nasdaq have gained 21% and 23%, respectively.

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