Tesla (TSLA) CEO Elon Musk recently delivered a warning for the automaker’s cybercab launch in an attempt to lower expectations. With fourth-quarter earnings and the all-important conference call due next week, Tesla CEO Elon Musk appeared to possibly lower expectations late Tuesday with comments regarding key future Tesla products.
Musk, in a social media post to X on Tuesday evening, warned that early production for the Cybercab, which has been touted to be designed for true autonomy, and the Optimus humanoid robot will be slow. “The speed of the production ramp is inversely proportionate to how many new parts and steps there are,” Musk said on X. “For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being fast.”
Despite being down an overall 4.5% in the past week, Tesla (TSLA) stock rallied 4.21% on Wednesday. The stock is also trending upward after Musk confirmed that the automaker’s vehicles equipped with the AI4 (HW4) chip will be able to achieve unsupervised autonomous driving without requiring upgrades. Musk had then said that the AI6 and AI7 chips would help in developing AI, with the AI6 chip useful for data centers, while the AI7/Dojo3 “will be space-based AI compute.”
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Furthermore, Tesla and its autonomous driving technology scored a big win on Wednesday that sent the stock higher. Insurer Lemonade announced a 50% rate cut for any Tesla drivers using Tesla’s Full Self-Driving driver assistance product, which costs $99 a month. “Lemonade’s move is an endorsement of Tesla CEO Elon Musk’s claims that the company’s vehicle technology is safer than human drivers, despite concerns flagged by regulators and safety experts,” reads part of the news release. The news is big for Tesla’s Full Self-Driving driver assistance, which has been at the center of investigation and controversy over recent months due to several accidents recorded.
At press time, TSLA is trading near the top of its 52-week range and above its 200-day simple moving average.