Tesla stock sank Thursday, snapping its 11-day run of consecutive gains, after Bloomberg reported the EV giant is pushing out its "robotaxi" reveal event from Aug. 8 to October.
The move to postpone the robotaxi was made to give Tesla more time to build vehicle prototypes, Bloomberg reported Thursday, citing unnamed sources who have knowledge of the decision.
Chief Executive Officer Elon Musk had previously said Tesla would unveil its robotaxi product on Aug. 8.
Tesla stock fell 8.4% to 241.03 during market action on Thursday, after booking an 11th consecutive advance on Wednesday. Many top performing stocks struggled Thursday, including Nvidia.
"While the knee jerk reaction will clearly be negative on a delay of Aug. 8 based on this report that just hit, we believe the timing of robotaxis, partnerships, and the ultimate autonomous and AI driven technology does not change at all for our bullish Tesla thesis," Wedbush Securities analyst Dan Ives, a longtime Tesla bull, wrote Thursday.
Tesla's Supervised Full Self-Driving feature, despite its name, is not full self-driving. It appears to be far off from being capable of truly autonomous driving.
Tesla Stock Performance
TSLA stock had surged 44% in an 11-day win streak, the longest run since a string of 13-consecutive gains in June 2023.
Last week, Tesla stock skyrocketed 27.1% to 251.52, moving above the stock's 200-day moving average as Q2 deliveries fell vs. a year earlier but beat lowered expectations.
Shares are now greatly extended from the 191.08 from handle buy point, according to MarketSurge chart analysis. That buy range extended to 200.63.
TSLA stock is around a long-term trendline going back to its late 2021 all-time high. Tesla has been long overdue for at least a pause from its advance.
In June, shares gained more than 11%. Tesla shareholders recently voted in favor of giving Musk his 2018 $56 billion pay package and reincorporating the EV giant in Texas, moving it from Delaware.
With the annual meeting wrapped up, analysts are looking to Tesla's second-quarter earnings on July 23.
Tesla stock ranks third in the 35-member IBD Auto Manufacturers industry group. The stock has an 89 Composite Rating out of a best-possible 99. Shares have an 89 Relative Strength Rating and a 62 EPS Rating.
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