Tesla Shares Slide 6% as Cybercab Launch in Austin Underwhelms Wall Street

According to CNBC, Tesla shares slid 6% on Friday, reversing a 5.4% gain from Thursday ahead of the event. RBC Capital Markets analysts wrote that Tesla offered limited new incremental disclosure relative to prior announcements, leaving key questions around pricing, production cadence and regulatory approvals open. Wells Fargo analysts headlined a note 'TSLA Cybercab Launch Event Underwhelms' and said the Austin service is facing early execution issues, including routing errors, missed destinations and excessive wait or drive times reported by users.

The event was unusual for Tesla: it was invite-only, lacked a public livestream and, according to TechCrunch, the keynote lasted only about 15 minutes. CNBC reported that CEO Elon Musk never made an appearance. Also on Thursday, the National Highway Traffic Safety Administration initiated an 'audit query' to determine whether Tesla properly self-certified the Cybercab as compliant with applicable federal safety standards.

According to CNBC, Tesla first showed the Cybercab almost two years ago and has been producing it since April. The Cybercab is a bronze-colored two-seater with scissor doors and no steering wheel or pedals. TechCrunch described it as a fully autonomous vehicle using only cameras and AI, at much lower cost than a Waymo ride. Many specifics were not announced on stage; instead, TechCrunch reported, Tesla scattered them in PDFs released Thursday and in updated terms of service for its Robotaxi app.

Those documents show that Tesla, for now, does not allow children under 13 to ride in a Cybercab, TechCrunch reported. All minors under 18 must be accompanied by an adult. Tesla's Robotaxi service using Model Y SUVs permits riders between 8 and 17. The Cybercab has no LATCH anchors for child seats, which can only be attached using the seat belt.

The documents also described the Cybercab's behavior after a crash. In a collision, the airbags inflate, doors unlock, hazard and interior lights turn on, the high-voltage battery is disabled, windows move to the vent position, the vehicle brakes to a stop and parks, and the infotainment system starts a two-way connection with Tesla's rider support team. Tesla's use of electronic door latches has come under scrutiny in the United States and China; last month, according to TechCrunch, Tesla agreed to recall 3 million cars in China alongside other automakers after an investigation into latches that could trap occupants after a crash. The Cybercab includes a manual door release in a visible position on each armrest.

TechCrunch also reported that the Cybercab uses a brake-by-wire system with electric actuators controlling the brake calipers, instead of a hydraulic circuit. Musk wrote that this eliminates the need for hydraulic plumbing around the car. Tesla does not explain why the Cybercab's windows cannot be fully opened at this time. The USB-C outlets in the vehicle deliver 90 watts, roughly four times more than a typical car outlet, according to Tesla influencer Jeremy Judkins.

Not all commentary was negative. In a separate CNBC article, Mike Khouw, who said he has seen the Cybercabs driving near Tesla's Palo Alto headquarters, described the vehicle as 'a game changer.' He proposed an options trade that would profit from a rise in Tesla shares while acknowledging that Waymo already has scale and trip volume Tesla has not yet matched.