Tesla investors shaken by postponement of key robotaxi unveiling
Why Tesla Stock Dropped 8% on Wednesday
Has any high-profile stock been more volatile than Tesla (NASDAQ: TSLA) lately?
After a surge of investor optimism driven by the company’s latest delivery figures, the bears took over on Wednesday. A troubling media report caused a rapid shift in sentiment, pushing Tesla’s share price down by more than 8% during the trading session.
Postponement of a Major Product Introduction
Before the market opened, Bloomberg published an article stating that Tesla will delay the unveiling of its highly anticipated robotaxi. According to unnamed “people familiar with the decision,” this postponement is to allow the robotaxi team to rework certain aspects of the vehicle and build more prototypes.
Tesla CEO Elon Musk had initially set the robotaxi introduction date for Thursday, Aug. 8. Bloomberg’s sources now indicate this will be delayed by about two months.
Investors were understandably excited about the robotaxi, as it has the potential to generate significant new revenue streams for Tesla. Any delay in its introduction is therefore a cause for concern.
Tesla has not yet officially commented on the Bloomberg report.
Upcoming Second-Quarter Earnings
While the robotaxi news certainly impacted Tesla stock, the major event to watch this month is the company’s second-quarter earnings report, slated for release on Tuesday, July 23. This report will provide clearer insight into whether the company is truly improving its operations and fundamentals or if there are signs of significant erosion.
On average, analysts tracking Tesla stock expect a slight (2%) year-over-year decline in revenue to just over $24 billion. The bottom-line slump is expected to be more dramatic, with analysts predicting collective earnings of $0.61 per share, compared to $0.91 a year ago.
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