Tesla stock drops as the company offers nothing new or cool to distract investors

Last quarter, Elon Musk was able to make investors look away from Tesla’s poor earnings and news that it was no longer making its long-awaited $25,000 mass-market car, by telling investors it was going to make a somewhat cheaper car. The new vehicle would combine some of the Model 2’s tech with its existing lineup. Musk also showed off a new future revenue source for the company, the Robotaxi.

Voila, investors were happy and the stock jumped.

This time, investors were hoping for news on the robotaxi, which was supposed to be unveiled August 8 but which Musk has since delayed.

While today’s earnings release said the company was still on track to start production of the more affordable models in the first half of 2025, it didn’t give a date for the robotaxis:

“Though timing of robotaxi deployment depends on technological advancement and regulatory approval, we are working vigorously on this opportunity given the outsized potential value.” Not exactly clear!

Later, on the earnings call, Musk confirmed the robotaxi unveiling date would now be held on October 10 (10/10).

The stock was down over 4% after hours, despite beating revenue expectations, as investors focused on less bright news, like an EPS miss, profit falling 45%, a 7% decline in automotive sales, and the numerous EV headwinds contributing to Tesla’s shrinking market share.