Tesla stock was subjected to a strong down-trend because of high hopes for its optimus robot, driverless robot taxi, the Cybercab, during the “We, Robot” event.

Although the car of tomorrow should be on the assembly line by 2027, it will serve as the city transportation with a low price of $29,900 and an operating cost of $0.40. The investors’ mood appeared to have been less positive than expected.

Issues of the lack of specific arrangements about the time of launching, regulatory clearance and needed infrastructure constructions are the other concerns, as well as not mention of any trial of a cheaper electric car (EV). These doubts led to a drop of sixty billion dollars in Tesla’s market capitalisation last Friday, halting the earlier progress to some extent.

Tesla’s Speculative Value: AI Hype vs. Market Reality

Tesla stock has seen a great rise of 70% since April which is mainly due to the excitement over the artificial intelligence and self-driving technology by the company. The first thing to be aware of is the fact that the cost of a stock does not determine the future prospects of a company. The stock is priced by the investors who think a company has good or bad future performance. Before the robotaxi announcement, Tesla’s market value was up to over $760 billion, more than double the value of GM and Ford. The surviving $600 billion—by far the larger piece—is, however on the basis of the speculative projects of Tesla—such as Full Self-Driving technology, robot-taxis, and optimus robot.

The sell-off points to the investor’s cautious behaviour when it comes to Tesla’s exciting but not yet tested new ventures, even as the company still keeps the esteemed status in the electric vehicle market. Tesla will be greatly dependent on its ability to overcome regulatory, technological, and logistical challenges for it to keep its high market capitalisation.

Last Week: Tesla Stock Price History

TSLA shares tumbled 12.9% in the last seven days and ultimately ended the week at $217.81, which became the biggest turnaround it has experienced since April. A deep 8.8% drop on the last working day had a serious impact on the shares as they leveled below the 50-day moving average, a sell signal for stock traders. 

Elon Musk’s unveiling of the Cybercab and Robovan at Tesla’s new robotaxi event triggered the stock depreciation, as he failed to provide clear details about their availability. Analysts showed their indignation toward the loose timeframe, citing the future problem with Tesla’s autonomous development. Investors now shift their focus to Tesla’s upcoming Q3 earnings on October 23, with a decrease of 11% in profits but an estimated 9% growth in sales as the expectations.

Tesla Stock Chart Analysis

The last few days in the Tesla stock market have seen the price fluctuating very much, so we have been sticking to a telly the movements. The opening price of Tesla on October 15 was $218.98, and it was moving in a range between $218.73 and $219.60 before it closed at $219.15 with a fractional gain of 0.07%. The stock, however, had some bad days recently.

On October 11, we witnessed a sensitive decrease when shares plummeted down aggressively. Many shareholders found the Tesla robotaxi event lacking in specific information, about the new products including the optimus robot, causing this drop. The stock was unable to keep up with its 50-day moving average, showing a strong signal of a bear market and causing a sudden rise in the trading volume. A number of the traders appeared to cut out of their trading positions, thereby creating additional downward pressure.

After that, Tesla was simply trying to maintain its current price, so it is going to take the time of this accumulation and swing up and down. We believe there is a degree of uncertainty among the investors till the end of Q3 earnings on October 23, which can, as a whole, bring a surprising correction. Notwithstanding, profit is expected to come down 11% even with a 31% growth in sales, which is indeed quite justified.

Though the EV activities of Tesla still appear to be vibrant, the obscurity connected with the projects of autonomous driving has made us cautious, and we are aware that the stock can also still see volatility shortly.

Can Tesla rise above its problems and get back to full investor confidence?

Pay attention to the latest updates and changes in the market to see if can the EV leader gain back its momentum!