Zinger Key Points
- Tesla's decision to postpone its RoboTaxi unveiling to October leads to a 6.14% drop in its shares amid increased development time.
- Months ago, Chief Executive Officer Elon Musk scheduled the event for August 8.
- China's robotaxi initiative gains traction, affecting markets as Baidu's shares surge on growing interest in its Apollo Go service.
- Get Monthly Picks of Market's Fastest Movers
Tesla, Inc. TSLA shares are trading lower on Thursday following a report that the company plans to delay its robotaxi unveiling from August to October.
Bloomberg, citing people familiar with the discussions, reported that this delay allows teams more time to develop additional vehicle prototypes.
Months ago, Chief Executive Officer Elon Musk scheduled the event for August 8, and anticipation has driven Tesla shares up for 11 consecutive days, the report added.
In April, Musk clarified in a post that he picked the date partly because “8/8” is deemed a lucky number in China. The date also coincides with the birthday of his triplets.
Bloomberg claims that the delay has been communicated internally, and the information has not been publicly disclosed.
The concept of launching an autonomous taxi service has been discussed at Tesla for at least eight years, originating when Elon Musk outlined a second version of his “master plan” for the company, Bloomberg added.
Musk has recently emphasized this project over developing a cheaper electric vehicle than Tesla’s most affordable car, the Model 3 sedan.
Meanwhile, as China’s initiative to develop robotaxis gains consumer acceptance, it also raises concerns among taxi drivers about potential job losses due to increased competition, CNBC said in a report.
In fact, Baidu, Inc. BIDU saw its shares surge by the most in over a year, driven by growing interest in its Apollo Go robotaxi service in China.
Traders are optimistic that robotaxis will gain further support following Beijing’s recent announcement that it will back them for ride-hailing and car rental services, Bloomberg reports.
According to Benzinga Pro, TSLA stock has gained over 9% in the last six months. Investors can gain exposure to the stock via the T-REX 2X Long Tesla Daily Target ETF TSLT and the Tidal ETF Trust II The Meet Kevin Pricing Power ETF PP.
Price Action: TSLA shares are trading lower by 6.27% to $246.77 at the last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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