By Chris Kirkham

LOS ANGELES (Reuters) -For a businessman who perpetually struggles with damaged guarantees, Elon Musk gave himself fairly a to-do record Thursday evening at Tesla (NASDAQ:)’s long-awaited Hollywood unveiling of its driverless robotaxis.

His slew of bulletins throughout a 20-minute presentation have been quick on sensible particulars, which pushed the inventory to shut almost 9% decrease at $217.80 on Friday.

After traversing the faux streets of the Warner Bros film studio set in a smooth, silver two-door “Cybercab” prototype, he promised that the corporate’s fashionable Mannequin 3 and Mannequin Y automobiles would be capable of function with out driver supervision in California and Texas by subsequent 12 months.

Musk mentioned the corporate would begin constructing the absolutely autonomous Cybercab by 2026 at a worth of lower than $30,000, and confirmed off a robovan able to transporting 20 individuals round city – which he mentioned would reshape cities by “turning parking heaps into parks.”

Later got here the dancing humanoid robots that additionally blended drinks on the bar, which Musk mentioned Tesla may even ultimately promote for $20,000 to $30,000 a chunk. “I feel this would be the greatest product ever, of any sort,” he declared.

Thursday evening’s digital dance music-infused occasion had the signature trappings of Musk’s salesmanship, however some Tesla traders and consultants mentioned they have been hoping for extra concrete particulars on how the corporate plans to remodel from an automaker into an autonomous driving and synthetic intelligence titan with a stable marketing strategy.

The inventory, which has been pummeled since its file excessive in late 2021 by fears of cheaper EV rivals consuming into Tesla’s market share, is up over 30% since April, when Musk introduced the shift to robotaxis. Nonetheless, shares are down almost 16% over the previous 12 months, in contrast with a virtually 33% enhance within the broad-market .

“His imaginative and prescient is gorgeous, however any person has to actualize it,” mentioned Ross Gerber, a Tesla shareholder and CEO of Gerber Kawasaki Wealth and Funding Administration. “For now, for the subsequent 24 months, Tesla has to promote EVs. Why aren’t we centered on that?”

Gerber mentioned he was comfortable to see merchandise just like the Cybercab and the robovan, however hoped to additionally see a extra conventional, lower-priced mass-market car that the corporate may promote within the close to future.

Musk had for years pledged to promote a automotive anticipated to start out at about $25,000, a promise that traders noticed as essential to successful new clients. Reuters reported completely on April 5 that Tesla had deserted this venture, initially sending Tesla shares down.

Shares of ride-hailing corporations Uber (NYSE:) and Lyft (NASDAQ:) closed about 11% and 10% greater, respectively, as analysts mentioned the shortage of particulars on Tesla’s robotaxis eased competitors worries for the businesses.

‘YEARS BEHIND’

Tesla is aiming to leapfrog incumbent self-driving gamers, together with Alphabet (NASDAQ:)’s Waymo, by pursuing a lower-cost technological path that Musk believes will permit the corporate to scale up its autonomous automobiles far faster than rivals.

Tesla’s technique is easier and less expensive than that of its rivals, however has essential weaknesses. Chief amongst these is that the AI know-how underpinning its self-driving system makes it almost unimaginable to pinpoint why a crash or different failure occurred – one thing that would concern regulators.

“Tesla software program is at the least years behind the place Waymo is. That is the laborious half. No flashy car design goes to alter that,” mentioned Matthew Wansley, professor at New York’s Cardozo Faculty of Regulation.

Tesla’s rivals use related AI and digital camera know-how, however layer on so-called redundant techniques and more-expensive sensors as a security precaution.

Ramesh Poola, co-chief funding officer at Artistic Planning, which holds Tesla shares, mentioned he was impressed by the presentation however “clearly, we have been searching for extra particulars on what precisely his future plans are going to be and the way he’ll monetize this new AI and robotics.”

Particularly, Poola mentioned he anticipates regulators will pose a “main hurdle” to Musk’s plans to shift to unsupervised autonomous driving by subsequent 12 months. Tesla’s present “Full Self-Driving” driver-assistance function can’t be operated safely and not using a human driver paying fixed consideration.

“He is proven the prototypes and undoubtedly there’s some pleasure round it,” Poola mentioned. However widespread adoption of autonomous Cybercabs, the place riders can hail rides by means of an Uber-style app, are nonetheless “perhaps three to 4 years away,” he mentioned.

That isn’t essentially a foul factor, Poola mentioned, including that he will likely be telling purchasers to not promote Tesla inventory. “There are heaps and plenty of avenues to monetize this know-how,” he mentioned. “Cybercab might not essentially be subsequent 12 months, however down the highway, the viability is there.”

Musk had mentioned he deliberate to function a fleet of self-driving Tesla taxis that passengers can hail by means of an app. He made no point out of the app at Thursday’s occasion.

Tasha Keeney, director of funding evaluation at Tesla investor ARK Funding Administration, mentioned she had been hoping for extra specifics on the app.

Nonetheless, Keeney mentioned she was inspired by Musk’s timeline of providing an unsupervised model of its full self-driving system in Texas and California subsequent 12 months.

“If they will try this, I do not see why they would not launch a robotaxi service quickly after,” she mentioned.