Tesla stock slid more than 7 percent after its September 3 Cybercab event disappointed investors, and GLJ Research analyst Gordon Johnson reiterated a Sell rating with a $24.86 price target. The bearish call follows an event that lacked rollout details, pricing, and consumer order options.
Tesla shares dropped more than 7 percent in the 24 hours after its September 3 Cybercab event underwhelmed investors, and GLJ Research's Gordon Johnson reiterated a $24.86 price target on the stock.
"Tesla failed to provide a rollout target, pricing, or consumer order option at the event," Johnson said. The analyst also noted that CEO Elon Musk did not appear at the Austin presentation.
The stock had risen 7 percent on Thursday as the event approached, then reversed course in Friday trading, falling 6 percent. The National Highway Traffic Safety Administration opened an audit query into how Tesla self-certified that the Cybercab — which lacks a steering wheel, brake pedal, and mirrors — meets federal safety standards.
Johnson's target ranks among the most bearish on Wall Street for Tesla. Wells Fargo's Colin Langan also reiterated a Sell rating with a $130 target, implying 63 percent downside from current levels.
The Cybercab event, held at an invitation-only gathering in Austin, showcased a fleet of gold-colored two-door vehicles with butterfly doors and no conventional manual controls. Tesla said the driverless cabs would begin operating at 5 p.m. CT on Friday in a limited section of Austin, with Ashok Elluswamy, Tesla's head of artificial intelligence, saying full-time availability would come "next month or so."
That timeline falls short of Musk's social media promises of "A Storm of Cybercabs" in the hours before the event. Morgan Stanley analysts had predicted before the event that a muted reaction was possible if investors found the rollout underwhelming.
The Cybercab launch puts pressure on ride-hailing operators Uber and Lyft, which face potential disruption if Tesla scales its robotaxi service. However, Tesla still needs regulatory approval for unsupervised Full Self-Driving technology on a widespread basis, a process the NHTSA audit query could complicate.
For Tesla holders, the Cybercab event was expected to be the key catalyst for the company's autonomous driving narrative. The stock's reversal after the event, combined with regulatory scrutiny and Johnson's bearish target, leaves shares vulnerable until Tesla provides concrete production and pricing details.
This article is for informational purposes only and does not constitute investment advice.
