Key Takeaways
- Tesla shares dipped to approximately $405–$408 on Friday, marking another weekly decline and a ~5% drop following January’s earnings release
- Cybercab program manager Victor Nechita revealed his exit coinciding with the first Cybercab’s production completion
- The EV maker aims to launch robo-taxi services across nine cities by mid-2026, trailing Waymo’s current 10-city footprint
- TSLA shares are valued at more than 200x projected 2026 earnings, approximately 10x higher than the S&P 500’s average multiple
- Analyst consensus stands at Hold for Tesla stock, with a mean price target of $396.80 suggesting modest downside potential
Tesla shares experienced downward pressure on Friday, extending a challenging week for the electric vehicle manufacturer. The stock hovered between $405 and $408, showing a marginal 0.1% decline during morning trading.
The automaker has posted losses in three out of the past four trading weeks. Since delivering fourth-quarter earnings results that exceeded expectations in late January, the stock has shed approximately 5%.
Adding to recent concerns, Victor Nechita, who managed Tesla’s Cybercab vehicle development program, revealed his decision to leave the company via LinkedIn.
“Leading the team through the development of Cybercab has been a humbling experience,” Nechita stated, highlighting the team’s achievements in efficiency, safety, and cost-effectiveness.
The timing of his departure is particularly notable. Nechita’s announcement came just as the inaugural Cybercab completed production. Tesla has remained silent regarding his replacement or any official statement about his exit.
Autonomous Vehicle Ambitions Face Scrutiny
The Cybercab represents a dedicated robo-taxi design featuring no traditional steering wheel or foot pedals. Tesla initiated its autonomous ride-hailing service in Austin, Texas last June, deploying Model Y vehicles.
The company’s roadmap includes expansion to nine metropolitan areas by mid-2026. This timeline positions Tesla behind Alphabet’s Waymo division, which currently operates autonomous taxi services across 10 cities.
The robo-taxi initiative represents a cornerstone of Tesla’s investment narrative. Management is working to persuade shareholders that its “physical AI” portfolio — encompassing autonomous vehicles and humanoid robots — will catalyze the next wave of profit expansion.
Tesla’s current valuation exceeds 200 times its projected 2026 earnings per share. This premium represents roughly 10 times the valuation multiple of a typical S&P 500 constituent.
While investors have maintained their support, the recent price weakness indicates mounting skepticism. Tesla must demonstrate successful Cybercab deployment, particularly following the departure of a critical program manager.
Cybertruck Receives Audio Enhancement
In separate developments, Tesla announced this week that the Cybertruck will gain Active Noise Cancellation functionality. The necessary hardware components have been integrated into the vehicle since production began but remained dormant until now.
The technology employs microphones and audio speakers to identify ambient road noise and counteract it. Tesla has deployed comparable systems in the Model S and Model X lineups since 2021.
Despite this announcement, Tesla shares dropped nearly 3% on Thursday. The Cybertruck enhancement failed to lift investor sentiment.
Tesla additionally disclosed that its Hollywood location featuring a diner and 80 EV charging stations incorporated recycled stainless steel sourced from Cybertruck manufacturing operations.
Current Wall Street analyst consensus rates Tesla stock as a Hold. This rating reflects 12 Buy recommendations, 11 Hold ratings, and 7 Sell opinions issued during the last three months. The consensus analyst price target stands at $396.80.
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