MARKET REPORT: £60bn wiped off Tesla as ‘Robotaxi’ launch falls flat
Tesla’s value dropped around £60billion after the launch of its self-driving Robotaxis fell flat.
In a much-hyped event, the electric vehicle car-maker’s boss Elon Musk unveiled plans for the Cybercab to be in production before 2027.
He said the vehicle, which has been designed without a steering wheel or pedals, will cost less than £23,000.
Tesla has described its self-driving cars as a cross between Uber and Airbnb, with owners acting as landlords for their autonomous vehicles as they pick up and drop off fares.
But investors were unimpressed and shares fell as much as 10 per cent in early trading in New York, wiping some £60billion off Tesla’s value.
Driven to distraction: Elon Musk said the vehicle, which has been designed without a steering wheel or pedals, will cost less than £23,000
‘We found Tesla’s Robotaxi event to be underwhelming and stunningly absent on detail,’ said Bernstein analyst Toni Sacconaghi.
‘Musk has painted a consistent vision and promise of autonomy for nearly a decade, and we and investors had hoped last night’s event would provide a detailed roadmap for getting there. But details were scant to non-existent.’
Analysts at Wedbush Securities said the ‘elephant in the room’ was the absence of any discussion on Tesla’s upcoming Model 2 car next year.
Back in London, the FTSE 100 rose 0.2 per cent, or 15.92 points, to 8253.65 and the FTSE 250 gained 0.3 per cent, or 56.56 points, to 20764.93.
Vistry’s top shareholder has raised its stake in a much-needed vote of confidence following a dismal week for the housebuilder.
US investment firm Browning West – whose founder Usman Nabi joined Vistry’s board in January – bought nearly £7.5m worth of shares.
That raised its stake in the FTSE 100 firm – formerly known as Bovis Homes – from 8.16 per cent to 9.08 per cent. Shares rose 2.4 per cent, or 22p, to 923p, but they are still down 30 per cent this week. The stock crashed on Tuesday after the housebuilder warned profits would take a £115m hit because it underestimated development costs.
Recruitment firm Hays reported a 14 per cent slump in group fees in the first quarter to the end of September. But the industry-wide hiring challenges have prompted the company to continue to cut costs across its business. Shares fell 1.1 per cent, or 0.95p, to 84.8p. Qinetiq won a three-year contract worth a potential £150m with the Ministry of Defence (MoD).
The firm will provide the MoD’s Defence Digital organisation with engineering and programme support to help the British Army communicate while on the front line.
Qinetiq has been awarded an initial £39m from the deal which comes with an option to extend by a further two years. Shares edged up 0.8 per cent, or 3.4p, to 450.2p.
Fund manager Premier Miton warned confidence among investors has been rattled by ‘significant uncertainty’ ahead of the Budget at the end of the month.
Clients withdrew £133m of cash in the fourth quarter to September 30. Despite this, Premier Miton’s assets rose 9 per cent to £10.7billion following a strong summer. Shares rose 2.6 per cent, or 1.5p, to 60p.
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