On October 11, the three major U.S. stock indices experienced collective gains, with the Dow Jones Industrial Average and the S&P 500 achieving historic highs, rising 0.97% and 0.61%, respectively. Conversely, Tesla's stock plummeted by 8.78% following the unveiling of its autonomous taxi, the Cybercab. Despite the noteworthy technological advancements, investor confidence was undermined by dissatisfaction with the details presented at the launch event and uncertainty regarding future developments; meanwhile, competitors Lyft and Uber saw their stock prices increase.

Major U.S. Indices Post Collective Gains, Reaching New Highs

In the trading session on October 11, the U.S. stock market demonstrated robust performance. The three major indices—the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite—all closed higher, with the Dow and S&P 500 indices achieving record highs. Specifically, the Dow rose 0.97% to close at 42,863.86 points; the S&P 500 increased by 0.61%, closing at 5,815.03 points, marking its first time above the 5,800-point threshold; and the Nasdaq index gained 0.33%, finishing at 18,342.94 points. This performance marked the fifth consecutive week of gains for all three indices, thereby providing a significant boost to the U.S. stock market.

Tesla Cybercab Launch Results in Significant Stock Decline

Despite the overall strong performance of the U.S. stock market, Tesla encountered setbacks during its recent product launch. At the highly publicized Tesla "We, Robot" event, CEO Elon Musk showcased the Cybercab, an autonomous vehicle devoid of a steering wheel or pedals, while promising mass production within three years at a price point below $30,000. However, following the event, market expectations reached a peak that the presentation ultimately failed to meet, resulting in an 8.78% decline in Tesla's stock to $217.80 per share, with a market capitalization loss of approximately $62.2 billion. Concurrently, competitors Lyft and Uber experienced stock price increases of 9.59% and 10.81%, respectively.

The launch of the Cybercab, while causing considerable volatility in the capital markets, represents a significant step forward for Tesla in the realm of autonomous driving technology. Nonetheless, the market's response to the Cybercab has been complex and multifaceted. Some analysts and investors, for instance, expressed concerns regarding the lack of specific details provided by Tesla during the event, seeking more information on how the company plans to successfully transition from an automobile manufacturer to a robust player in the fields of autonomous driving and artificial intelligence. Furthermore, the post-event stock reaction indicates uncertainty regarding the future prospects of the Cybercab.

Following the Tesla event, analysts from Jefferies remarked that Tesla's "ambitious goals lack substantial feasibility evidence." They noted that Tesla did not present a concrete plan for achieving higher levels of autonomous driving, which significantly diminishes its threat to existing ride-hailing service providers. Jefferies further posited that Tesla's taxi plans "lack authority," thereby limiting their impact on Uber's stock. This situation is undoubtedly favorable for Uber. Paul Miller, an analyst from the well-known research firm Forrester, emphasized that understanding Musk's statements necessitates consideration of his "failure to achieve goals in the autonomous driving sector for ten years or more." Moreover, Dan O'Dowd, founder of the safety advocacy organization the Dawn Project, indicated in a report that Tesla's autonomous taxi would merely be "a fictional creation from Warner Bros." until it reaches delivery volumes comparable to those of Waymo. Finally, Uber's CEO Dara Khosrowshahi stated earlier this week that he believes autonomous taxis will not become a significant component of the company's fleet in the coming years due to the immaturity of the technology, cautious regulatory attitudes, and the lack of competitive cost structures for the foreseeable future.

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