Tesla (TSLA) investors got a dose of realism on Tuesday after CEO Elon Musk warned that early production of the company’s Cybercab robotaxi and its humanoid robot, Optimus, will move at an “agonizingly slow” pace before picking up speed later.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Musk’s comments came in response to a post on X suggesting Cybercab production could begin in less than 100 days. While that timeline caught investor attention, Musk quickly tempered expectations, saying the ramp depends heavily on complexity.
“For Cybercab and Optimus, almost everything is new,” Musk wrote. “So the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
A Big Bet with a Long Runway
The update is important because much of Tesla’s roughly $1.39 trillion valuation is based on future bets like self-driving technology and humanoid robots, not on current electric vehicle sales, which still bring in most of the company’s revenue and profit.
The Cybercab is a fully autonomous, two-seat vehicle with no steering wheel or pedals, showing how far Tesla is moving beyond traditional cars. The company plans to begin volume production of the Cybercab in 2026, with Optimus production expected to start toward the end of that year.
Early Testing Is Underway, but Scale Will Take Time
Tesla has already taken some early steps. In December, Musk said the company was testing robotaxis without safety monitors in the front passenger seat. Last year, Tesla also launched a limited robotaxi service in Austin, Texas, using Model Y vehicles equipped with its Full Self-Driving software. These early tests were limited to specific areas and still included human oversight.
Even so, scaling production remains a major challenge, and Musk’s comments suggest investors should expect a slow build rather than quick results.
Is Tesla Stock Worth Buying?
Analysts remain sidelined on Tesla. On TipRanks, Tesla shares have a Hold consensus rating based on 12 Buys, 11 Holds, and seven Sell ratings. The average Tesla price target of $397.47 implies 5.19% downside potential from current levels. Over the past year, TSLA stock has gained 1.14%.
