Recently, Tesla's self-driving taxis have undoubtedly been the star attraction in the tech and automotive industries, attracting the attention of almost everyone at this highly anticipated press conference. However, after the sensational Tesla press conference, Tesla lost RMB 490 billion overnight, leaving people wondering why the capital market is so unenthusiastic. What are the reasons behind this?

I. Tesla Loses RMB 490 Billion Overnight After Sensational Press Conference

According to Jiemian News, after a two-month delay, Tesla unveiled the mystery of its self-driving taxi (Robotaxi) to the world. Recently, Tesla officially unveiled its Robotaxi product, named "CyberCab," at the press conference, marking a significant step forward for the company in the field of autonomous driving.

Tesla CEO Elon Musk demonstrated the autonomous driving capabilities of the new model in the most intuitive way possible by riding in the passenger seat and ascending to the podium. Simultaneously, upon ascending the stage, Musk announced that nearly 50 CyberCabs were already operating on-site, implying that Tesla has the capability to produce the model in small batches. The new vehicle is expected to cost less than USD 30,000 and is anticipated to enter mass production in 2026.

On the technical front, Tesla's "Full Self-Driving" (FSD) system continues to be updated and upgraded, with over 400,000 vehicles worldwide now using this beta version of the system. The continuous accumulation of data enables the system to respond more accurately to complex traffic situations, gradually enhancing its safety and reliability.

Musk stated that, leveraging Tesla's economies of scale, the FSD will continue to iterate through extensive real-world learning, further accelerating its functional development and ultimately achieving fully autonomous FSD capabilities.

However, surprisingly, according to the Daily Economic News, despite the impressive debut of 20 Robotaxis, analysts covering Tesla unanimously agreed that the overall presentation lacked details, and neither the market nor investors heard what they hoped to from Musk. At least three questions remained unanswered: when will Tesla's Robotaxi hit the market, has there been any progress in Tesla's FSD technology, and when will the long-awaited low-cost model be released?

In subsequent U.S. stock trading, Tesla plummeted 8.78%, with its market value evaporating by nearly USD 70 billion (approximately RMB 494.7 billion) in a single trading session. Uber, a ride-hailing company, surged 10.81%, hitting an all-time high during the session, while Lyft also rallied 9.59%. Coincidentally, Tesla's domestic rival, Baidu, also saw its share price rise as analysts claimed that Tesla's lack of detail regarding its Robotaxi assuaged competition concerns.

Moreover, according to Beijing Daily, not only Tesla but also numerous companies in China are racing to embrace autonomous driving as the future industry. Currently, autonomous driving enterprises, represented by Luobokuai, are conducting road tests and operations in cities like Guangzhou and Beijing. Not long ago, Luobokuai sparked heated market discussions, marking the first salvo fired in China's autonomous taxi sector.

II. Why is the Market so Unenthusiastic?

The event of Tesla's market value evaporating by RMB 490 billion overnight represents a sudden shift in market sentiment, leaving many people bewildered. What exactly happened? Why is the market so unenthusiastic? How should we analyze this matter?

Firstly, while the press conference was impressive, it also raised more questions. While Tesla's press conference showcased impressive aspects, it also posed numerous questions. Take the Robotaxi as an example. Although a 2026 production timeline was announced, it was merely a vague timeframe without a specific launch date and lacked the detailed information the market anticipated. Such information is clearly insufficient for investors and consumers. In a fiercely competitive market environment, uncertainty often breeds concerns and doubts.

The lack of specific details means that key factors such as cost, performance, and market demand cannot be accurately assessed. For instance, the absence of details on vehicle range, charging time, and ride comfort makes it challenging to envision the product's real-world performance. Furthermore, potential technical challenges and supply chain issues during production become even more enigmatic due to the lack of details. Investors fear that these uncertainties may translate into risks, impacting the company's future earnings, which explains the market's cautious stance.

Moreover, autonomous driving itself is a process that requires continuous breakthroughs and adaptation to local laws, making it far more challenging than the application of other new technologies. Musk's current stance clearly falls short of investor expectations. How can the market trust the true value of a product that has yet to achieve full-scale production and application?

Secondly, autonomous driving has failed to meet market expectations. Tesla's Full Self-Driving (FSD) system has always been a focal point of public attention. During the press conference, Musk elaborated on FSD, but the market did not witness any tangible development opportunities. Musk's depiction seemed more like a long-term vision rather than a feasible development path.

As one of Tesla's core technologies, FSD holds great promise for future development. However, the content presented at the press conference failed to instill confidence in the market. On the one hand, fully autonomous driving technology faces numerous technical challenges in practical applications, such as recognizing complex road conditions and ensuring reliability in adverse weather conditions. Despite Tesla's significant R&D investments, the current technology level still falls short of market expectations.

On the other hand, Musk's statements at the press conference may have been overly idealistic. The future transportation scenario he depicted, while desirable, remains elusive in the short term. The market is more concerned with current progress and foreseeable future outcomes. However, Tesla's advancements in FSD seem to lag behind market expectations, raising doubts among investors about its future profitability.

Thirdly, competitors' advantages are undeniably more pronounced. The famous Chinese comedian Guo Degang has a classic joke that goes, "It's all thanks to my colleagues for making me look good." This saying aptly applies to China's autonomous driving industry. Taking the widely recognized Luobokuai as an example, it has achieved remarkable accomplishments in the field. Luobokuai's platform has accumulated over 7 million orders, a testament to its popularity in the market.

Luobokuai has opened manned tests in 11 cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, and Wuhan. This not only showcases the maturity of its technology but also demonstrates its proactive attitude towards market expansion. Through actual implementations in multiple cities, Luobokuai has accumulated vast amounts of user data and operational experience, enabling it to continually optimize its services and technology.

Moreover, Luobokuai is pursuing a global strategy, indicating its success not only in the domestic market but also its aspirations for the broader international arena. This proactive expansion strategy contrasts sharply with Tesla's approach. While Tesla has a global presence, it appears to lag behind some competitors in the practical application and market promotion of autonomous driving.

Competitors' rapid growth and tangible achievements have presented the market with more options and possibilities. In a fiercely competitive environment, investors and consumers tend to favor enterprises that offer tangible value and outcomes. The achievements of competitors like Luobokuai have posed greater challenges to Tesla's market competitiveness, further eroding market confidence in the company.

Fourthly, how should we view the era of autonomous driving? In the long run, fully autonomous driving technology represents the prevailing trend in the market, and Tesla is indeed the earliest new energy giant to invest in autonomous driving. However, this press conference clearly failed to provide the market with truly valuable long-term expectations.

Musk may have told a compelling story, but it remains a long way from becoming a reality. In the capital market, investors increasingly prioritize actual performance and foreseeable future earnings. While Tesla's press conference exuded a sense of futurism and technology, it lacked concrete business plans and profit forecasts.

For long-term investments, the market demands clear strategies and tangible progress in technology development, market expansion, and cost control. However, Tesla did not fully meet this market demand during the press conference. For instance, regarding costs, Tesla failed to provide cost estimates for new products like the Robotaxi, making it difficult for investors to assess its future profitability.

Undoubtedly, Tesla's significant loss in market value following the press conference directly reflects market dissatisfaction and concerns. The market demands tangible results and a clear development direction, not merely visions and concepts. To regain market trust and support, Tesla must make greater efforts in technology research and development, product details, and market promotion, transforming its visions into tangible value. Only by doing so can it remain competitive in the fiercely contested market and achieve sustainable development.

Quote of the Day: Though life may be challenging at times, it goes on. Each hurdle crossed brings us closer to overcoming them all. Difficulties are part of life's journey, and every challenge teaches us resilience. If things don't go as planned, remember that there's always a reason behind it, and what we lose may return in another form. Don't anticipate anxiety or worry about future troubles. Instead, savor each moment as it comes.