Tesla's announcement disappoints investors, TSLA stock plunges over 8%

Elon Musk spared no expense in hosting the "We, Robot" launch event at a Hollywood studio, showcasing the new autonomous vehicles Cybercab and Robovan. However, due to the lack of details and potential release not until after 2026, Tesla's stock price plummeted over 8% after the event. Despite the optimistic environment with the S&P 500 rising 22% this year, Tesla has dropped nearly 13% year-to-date.

Tesla's "We, Robot" launch event, with Musk making a grand entrance in the Cybercab

Ark Invest CEO Appears at Event and Continues to Increase Tesla Stock Holdings

Ark Invest CEO Cathie Wood, who has always been a strong supporter of Elon Musk, not only attended the "We, Robot" event in person, but also purchased 12,730 shares of Tesla stock with the ticker symbol TSLA on Friday, worth approximately $2.8 million, showing strong support through tangible actions. Currently, Tesla is the second largest holding in ARKW, accounting for 9.59% of the total fund, with a market value of $133 million.

In June, Ark released a comprehensive analysis report on Tesla, projecting a target price of $2,600 per share by 2029. The assumption is that by 2029, nearly 90% of Tesla's enterprise value and profits will be attributed to the Robotaxi business. Musk responded at the time: "Very challenging, but achievable!"

Ark Calls for Tesla to Reach $2,600 by 2029, Musk Responds: Challenging but Achievable!

Majority of Analysts Give Poor Evaluation

According to a report by FinBold, prominent Morgan Stanley analyst Adam Jonas expressed dissatisfaction with the lack of key details on artificial intelligence (AI) and autonomous driving in the event on October 11. Jonas believes that these demonstrations did not meet the benchmarks and deployment timelines that analysts were hoping to see, which could dampen investor enthusiasm. Morgan Stanley maintains an "overweight" rating on the stock but has adjusted the target price to $310.

Goldman Sachs also shares similar concerns, maintaining a "neutral" rating on Tesla with a target price of $230.

Only analyst Justin Post from Bank of America believes that the event met expectations and has given a "buy" rating, but with a target price of only $255.