Tesla Investors Disturbed by Cybercab’s Obvious Lack of Progress
The risks are becoming impossible to ignore. The post Tesla Investors Disturbed by Cybercab’s Obvious Lack of Progress appeared first on Futurism .
Tesla investors are growing increasingly concerned over the lack of progress in the company's development of the Cybercab, a two-seater robotaxi. The launch of the Cybercab in Austin, Texas, on September 4, generated minimal buzz and left many investors questioning the company's ability to compete with major players in the market.
Future Fund Advisors co-founder Gary Black tweeted that the launch was "a bust," as it offered little detail and left many key questions unanswered. The Cybercab's limited fleet and restricted area have made expansion into other states a daunting challenge. Early testing in New York City revealed that the company had to install steering wheels and hire human drivers, effectively turning the Cybercabs into glorified Tesla EVs.
This has raised concerns about the vehicle's viability and efficiency. Investors are now maintaining a "Sell" rating for Tesla, primarily due to mounting risks such as negative free cash flow, surging capital expenditures exceeding $25 billion, and regulatory audits delaying robotaxi expansion. The Cybercab is one of three major bets Musk has made on Tesla's future, alongside the humanoid robot Optimus and AI.
However, without significant advancements in the Cybercab project nearly two years since its initial unveiling, investors are demanding more substantial progress. Regulatory scrutiny is also mounting, with the National Highway Traffic Safety Administration launching a probe into the safety certification of the Cybercabs. Meanwhile, Tesla is expected to spend over $25 billion this year and increase its debt capacity to up to $30 billion, as the company aims to maintain its relevance in the rapidly evolving AI race.
The competition, led by Waymo, already operates in ten US metropolitan areas and provides half a million paid rides per week, further widening the gap between Tesla and its rivals. Tesla's core car sales business is also struggling, with delivery numbers recovering from a disastrous 2025 performance but still needing significant improvement.
The potential merger with Musk's SpaceX, while intriguing, poses a significant risk of adding even more debt to Tesla's balance sheet.
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