Al Root

Tesla stock was rising in early trading Tuesday as stakeholders continued to weigh in on Thursday's Robotaxi Day.

Shares of the electric vehicle maker were up 0.4% in premarket trading while S&P 500 futures were flat and Dow Jones Industrial Average futures had ticked up 0.1%.

Coming into Tuesday trading, shares were down about 8% since Tesla unveiled its "Cybercab" robotaxi at an event in Hollywood, Calif. on Oct. 10.

The majority opinion on Wall Street was the event didn't deliver the required details to get investors comfortable with Tesla's timeline for self-driving cab service despite offering demo rides in prototype Cybercabs. Tesla wants to launch a service in late 2025 using Model 3 and Y vehicles. It plans to start building the Cybercab in late 2026.

Some stakeholders felt better about what Tesla showed. "No steering wheels, no pedals, no nothing," said Sandy Munro, founder of automotive engineering consultancy founder Munro & Associates, in a video posted on his firm's YouTube channel. "This is like being chauffeured, but in the front seat instead of the rear seat...This has been absolutely brilliant."

Munro & Associates offer a range of engineering services, including tearing down cars, and EVs, to help auto makers benchmark technology. The firm typically has good things to say about Tesla's technology, and this time was no different: Munro was impressed with his demo drive around the Hollywood lot.

Tesla also showed off current versions of Optimus. Some of the robots appeared to be operated by humans remotely. something that also disappointed some attendees. Munro, however, sees the long-term potential. "In the automotive world you have something called the 3 Ds, dirty, dangerous, and drudgery," added Munro "Those are the three Ds [Optimus] will get rid of."

Tesla didn't respond to a request for comment about robot operation.

Munro's views are a reminder that while Wall Street appears to have declared Robotaxi Day a disappointment, there is always a range of views for investors to weigh.

Coming into Tuesday's trading, Tesla stock was down about 12% year to date. Along with the recent Robotaxi Day drop, falling EV sales have weighed on investor sentiment. Tesla delivered just under 1.3 million EVs in the first three quarters of 2024, down about 2% year over year.

Write to Al Root at allen.root@dowjones.com

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October 15, 2024 07:53 ET (11:53 GMT)

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