By most accounts, the unveiling of Tesla’s “Cybercab” — a fully automated robo-taxi — was a massive disappointment. The carefully curated event Elon Musk intended to ignite excitement for his company, his latest product, and his long-term vision had the opposite effect.
The Thursday night unveiling translated directly to a 10% stock dive for Tesla (NASDAQ: TSLA) on Friday. At the same time, it provided a boon for competitors Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT), as each company saw its shares shoot about 10% higher.
One analyst even called the Cybercab event “toothless” and the “best-case outcome for Uber.” And again, that was the general consensus, because Elon Musk failed to provide any specifics about how much this endeavor will actually cost or how profitable it could be. He also declined to give details on potential regulatory issues or a timeline for delivery.
Of course, as a showman, Musk threw out some rosy ballpark guesses. He said Cybercab production could start in 2026 and cost less than $30,000. Problem is, no one believes him. Nor should they.
There is absolutely no indication that Musk’s vision for autonomous taxis is anywhere near coming to fruition. There are only mock-ups, artist renditions, flashy videos, and far-fetched promises and predictions. And all of them from a man who has seen his status as a genius and visionary business titan erode rapidly in just the past few years.
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Musk’s crypto (Dogecoin) schemes, his disastrous acquisition of Twitter, and his financial entwinement with the Trump campaign do not paint a portrait of a focused and skilled tech industrialist. They look more like the addled preoccupations of a bored billionaire.
Nothing Musk says can be taken at face value. His credibility has been thoroughly shot through. And so his sci-fi Cybercab event crashed and burned. Just like that Tesla vehicle that exploded in France this past weekend.
Now, Tesla remains an interesting stock. But it’s also an overvalued one. It always has been. The company’s car business is worth about $200 billion, yet the company’s market cap totals nearly $700 billion — even after $60 billion in value was erased in last week’s stock decline.
Again, that’s nothing new for a stock that’s has a history of thriving amid its own hype, mystique, novelty, and potential growth. But if this latest event is any indication, the act is starting to wear thin.
Additionally, EV sales have been tepid — even in China, which has struggled to resuscitate its once dominant economy. And competition from traditional auto companies is growing more fierce.
Tesla’s profit is on track to decline for the second consecutive year this year — making it one of just 36 companies in the S&P 500 that’s seeing earnings decline. Prior to that, Tesla’s profit soared 80% in 2022 and 201% in 2021.
Those are real numbers — something that was sorely lacking at last week’s event. The Cybercab didn’t win anyone over, that’s for sure. And that’s why analysts and investors are starting to wonder when Tesla is going to reverse course, or if it even can.
However, if you want to actually profit from a revolution in ride-sharing and transportation, I have just the stock for you. I’m talking about an entirely new form of transportation that’s set to take the world by storm in 2025.
And the company behind it is still so small and new, it’d be like buying Tesla in 2010 — back when the stock still had something to offer. We’re talking about potential returns of as much as 2,000%.
So make sure to check out my full report on that opportunity here.
Fight on,
Jason Simpkins
Simpkins is the founder and editor of Secret Stock Files, an investment service that focuses on companies with assets — tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more…
In 2023 he joined The Wealth Advisory team as a defense market analyst where he reviews and recommends new military and government opportunities that come across his radar, especially those that spin-off healthy, growing income streams. For more on Jason, check out his editor’s page.
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