Musk: "Cybercab storm is coming"...Will Tesla (TSLA) overturn the robotaxi market?

▲ Tesla, TSLA)/AI generated image

Tesla (TSLA) has made a decisive move in its autonomous driving business ahead of the Cybercab reveal.

According to the US investment information platform StockTwits on September 3 (local time), Tesla CEO Elon Musk stated on X (formerly Twitter) that "a storm of Cybercabs" is approaching. Musk also emphasized Cybercab's cost competitiveness. With $1 million, one could buy 8 Waymo vehicles, each costing approximately $125,000. However, if ARK Invest's estimated cost of $18,000 per unit is applied, over 50 Cybercabs could be acquired. Musk said, "This figure doesn't even consider Cybercab's operational efficiency."

Tesla has been producing some Cybercabs and testing them on public roads since April. Musk previously stated that the price of the two-seater fully autonomous Cybercab could drop to about $30,000 in the long term. Tesla investor Sawyer Merritt reported that Cybercabs have been spotted frequently in downtown Austin, and more than 20 units were seen near Miami International Airport. Tesla added 106 Model Ys to its Texas robotaxi fleet, increasing the total registered vehicles to 420.

A comparison of actual operating costs was also released. According to Merritt, four Model Y robotaxi rides without driver intervention covered a total distance of 8 miles, with a total cost of $27.25. In contrast, a single 20-minute Uber (UBER) ride, including tip, cost $33. Ahead of the Cybercab reveal, Uber reduced its total workforce by 10%, or about 3,300 people, while expanding investments in ride-hailing, delivery, and robotaxis.

Ross Gerber, CEO of Gerber Kawasaki, described Cybercab as "the first physical AI EV." He expressed anticipation for a successful launch, stating that most automakers lag behind Tesla in software and hardware. He also praised the Full Self-Driving (FSD) software version 14.3.8, stating that the number of interventions has significantly decreased, showing "noticeable improvements." However, he pointed out that situations requiring driver intervention still occur too frequently.

Gary Black, Managing Director of Future Fund, praised Tesla's technology and manufacturing cost competitiveness but cautioned against the high stock price burden. He noted that Tesla's forward price-to-earnings ratio is approximately 220x, while its long-term earnings growth forecast is 35%. Black stated, "Never short a great company trading at an expensive price," adding that a high price might be a reason not to own a stock, but not a reason to short it. On StockTwits, individual investor sentiment towards Tesla rose from neutral to bullish, and 24-hour message volume increased by 19%.

[Key Article Summary]

-Musk emphasized Cybercab's cost competitiveness and operational efficiency, stating that "a storm of Cybercabs" is approaching.

-Tesla increased its registered robotaxi vehicles in Texas to 420, and Cybercabs have been repeatedly spotted in Austin and Miami.

-Gary Black acknowledged Tesla's technological competitiveness but warned of the high stock price burden, with a forward P/E ratio of approximately 220x.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*