Tesla Overview: Product Presentation Disappoints Investors and Lowers Future Cash Flow Estimates

As a result of a highly anticipated product demonstration by Tesla in Burbank, California, both fans and analysts were left looking to the future with disappointment. The present value of the company's future cash flows fell by 7.8 percent. Tesla showcased concepts of a two-seater, a van, and a humanoid robot. CEO Elon Musk mentioned the possibility of selling the two-seater to taxi companies starting in 2027. Meanwhile, the present value of future cash flows for the ride-hailing company Uber increased by 8.1 percent. Musk's announcement that Tesla vehicles could drive autonomously in Texas and California next year astonished many. Whether this could happen without intervention at all times remained unclear. It was also unclear whether this involved private vehicles or a robotaxi service. At the event, Adam Jonas from Morgan Stanley expressed disappointment at the lack of tangible innovations and details regarding Tesla's plans. Only a test drive in a Cybercab on a closed course was mentioned. Alejandro Nuno from UBS reported an unsatisfactory ride, as the vehicle missed the intended stop and continued for another round. Mannequins performing specific tasks were closely monitored, which, according to Jonas, does not suggest full autonomy. The expectations for new developments were not met. Analysts, like Tom Narayan from RBC Capital Markets, voiced similar concerns. They missed concrete numbers and a preview of more affordable models. Despite the criticism, positive expectations for Tesla's long-term prospects and the potential for robotaxi services remain. At present, the assumed market value of Tesla's future revenues stands at 700 billion USD—a truly remarkable value.