Tesla shares experienced a 6% decline on Thursday following reports that the company is delaying the unveiling of its Robotaxi by two months. Originally scheduled for August 8th, the launch has been pushed back to October to allow the project teams more time to develop prototypes. Tesla did not respond to requests for comment on the matter.
This drop in stock price came after an 11-day rally triggered by better-than-expected delivery numbers for the second quarter. Despite this rally wiping out the stock's losses for the year, Tesla shares have now returned to negative territory for 2024. This year has been marked by significant layoffs and a decline in sales due to competition in the electric vehicle market, particularly in China.
CEO Elon Musk has long promised shareholders a robotaxi, with initial projections made as early as 2015. However, these promises have yet to materialize, with Musk pushing back deadlines over the years. The competition, such as Alphabet's Waymo and Cruise owned by General Motors, has surged ahead in the development of autonomous vehicles.
Musk reiterated his commitment to developing robotaxis during a first-quarter earnings report in April, emphasizing Tesla's vision of a driverless transportation network. However, the company has a history of delaying commercial releases following product unveilings, such as its electric truck, the Semi, which was unveiled in 2017 but did not see deliveries until December 2022.
Tesla is set to report its second-quarter results later this month. The company's future success may hinge on its ability to deliver on its promises of autonomy and innovative technology in the rapidly evolving electric vehicle market.