Tesla's shares dropped by 11% after the launch of their new Cybercab, an electric, self-driving vehicle designed for ride-sharing. Elon Musk introduced the Cybercab without traditional controls like a steering wheel or pedals, aiming to make it cost-effective and priced below $30,000. However, investors were concerned due to limited details on production timelines and safety features.
Additionally, Tesla's Full Self-Driving (FSD) technology has faced scrutiny in the past, raising doubts about the viability of the Cybercab. These concerns led to a sharp decline in Tesla’s stock. Meanwhile, traditional ride-sharing companies like Uber and Lyft saw their stocks rise, reflecting confidence in their existing services over Tesla's ambitious new venture
