On Friday, Elon Musk—the visionary CEO at the helm of Tesla Inc. (TSLA) and renowned as one of the wealthiest people on the planet—set the tech and automotive sectors abuzz. Taking to social media, Musk dropped a hint that has been long awaited by enthusiasts and investors alike: Tesla is slated to roll out its much-talked-about Robotaxi this coming summer. This tease sent Tesla’s shares climbing in after-hours trading, adding a buzz of excitement to the market.
So What Exactly Happened?
Musk’s revelation was succinct, only sharing the date “8/8” for the robotaxi’s reveal, stirring curiosity and speculation among followers and investors. This isn’t the first time Musk has projected ambitious visions for Tesla’s foray into autonomous driving; he’s been known to forecast such advancements before, albeit with timelines that have yet to be realized.
History shows that Musk’s projections for self-driving technology have been a moving target. In 2016, he suggested a Tesla would autonomously traverse the country by the end of 2017. More promises followed, including claims of nearly achieving ‘level 5′ autonomous driving by 2020 and achieving full self-driving capabilities without human oversight in the following years—targets that have so far stretched beyond their due dates.
The stock market reacted favorably to Musk’s latest announcement, with Tesla shares climbing more than 4.8% in the hours post-closure on Friday, even though the stock had ended the regular trading day 3.6% down.
2024 has been tough on Tesla stocks, with the company’s shares dropping sharply by over 30%. Tesla’s challenges include softening demand for electric vehicles and stiff competition, particularly from China, leading to a 40% drop in quarterly profits and a muted revenue increase as per their January financial statement.
In the robotaxi arena, Tesla is not alone. General Motors’ Cruise and Alphabet’s Waymo have been key players, with Cruise recently facing regulatory hurdles in California, and Waymo expanding its services in several cities and teaming up with Uber Eats for delivery in Phoenix.
Musk’s personal fortune, meanwhile, is valued at approximately $189.2 billion, per Forbes, maintaining his position as one of the global elite in wealth.
