Tesla's Stock Tumbles as Company Backtracks on Robotaxi Announcement

Money | July 11, 2024, 8:24 p.m.

Tesla Inc. has postponed its robotaxi unveiling to October, allowing more time for additional prototypes to be built. CEO Elon Musk originally set the event for August 8, but a two-month delay was announced internally. The design team has been instructed to rework certain elements of the car. This decision caused Tesla's stock to drop 8.4% on Thursday, the largest decline since January. Despite this, shares of Uber and Lyft surged in response to the news. Musk has been pushing for an autonomous taxi service for years, prioritizing it over other projects. The company has been marketing Full Self-Driving features, although they still require supervision. With Tesla's vehicle sales slowing, there is increasing optimism around FSD technology. The automaker delivered fewer cars in the first half of the year and produced 14% less vehicles in the second quarter compared to the previous year.