The rally in Tesla (TSLA) stock has ended abruptly on media reports that the electric vehicle maker is delaying by two months the unveiling of its highly anticipated Robotaxi.
Tesla stock declined 8% on news of the Robotaxi delay, snapping an 11-day win streak that had sent the company’s share price up more than 40%.
Multiple media reports say Tesla has pushed the launch date of its self-driving taxi back to October from an initial unveiling date scheduled for August 8.
The company reportedly wants to give staff more time to build prototypes of the Robotaxi and ensure that the launch lives up to the hype surrounding it.
Following the latest decline, Tesla’s stock is down 3% on the year.
Tesla chief executive officer (CEO) Elon Musk has promised a Robotaxi for years. In 2015, he said Tesla’s cars would achieve “full autonomy” within three years.
In 2016, Musk said Tesla would be able to send one of its Robotaxis on a cross-country drive without requiring any human intervention by the end of 2017.
To date, the Robotaxi has never appeared. The latest delay seems to have given investors one more reason not to believe in Elon Musk’s vision for Tesla.
Prior to the rally that began this year’s second half, Tesla’s stock had been one of the worst performers in the benchmark S&P 500 index.
Declining sales, a loss of market share, and disappointing financial results have sunk the company’s share price.
Tesla’s stock is down 11% over the past 12 months and trading at $241.03 U.S. per share.
Tech Insider
