Tesla Fan Won't Buy Cybercab Despite Smooth Ride—Eyes Revenue Instead

During the Cybercab's grand premiere, Tesla enthusiast Matthew Donegan-Ryan was impressed by its seamless ride yet decided he wouldn't buy one, seeing more value in its potential to generate revenue.

Tesla Unveils the Cybercab and Robovan

Investor and Tesla enthusiast Matthew Donegan-Ryan was delighted by the Cybercab's effortless handling of difficulties during the glamorous premiere on the Warner Bros. Studio lot in Burbank, California.

In comparison to Tesla's most recent Full Self-Driving assisted driving software, he said it was "much smoother" and had less jerkiness.

A 20-person Robovan and Tesla's first robotaxi, the Cybercab, were unveiled at the same time. Aside from charging by wireless inductive charging, it will be devoid of any steering wheel or pedals.

Musk’s Vision and Regulatory Concerns

Musk praised the futuristic car as a stepping stone to an "age of abundance," but following its launch, Tesla was dogged by concerns about regulatory oversight and the viability of its ride-hailing business rivalry with Uber.

Donahue — According to Ryan, there were three buttons inside the Cybercab—one to turn on the interior lights and two to lift the door windows—and it was smaller than Tesla's Model 3.

Cameras and Computer Vision Tech

Also surprising to Donegan-Ryan was the fact that the Cybercab had so few cameras.

The robotaxi, he claimed, looked to share a camera arrangement with a Model Y or 3, and its self-driving technology is powered by computer vision. According to him, there was just a single extra camera mounted on the front bumper.

Cybercab’s Design and Cybertruck Resemblance

Donegan-Ryan noted that the Cybercab's visual resemblance to the Cybertruck, another Tesla vehicle, was most noticeable when viewed in person.

Titanium stealth wraps were displayed on all of the Cybercabs. According to him, it felt just like a Cybertruck when you felt the curves and corners.

Donegan-Ryan’s Verdict on Buying

Donegan-Ryan was impressed at the end. He informed Business Insider that he would think about getting a two-seater Cybercab for his parents, but he wouldn't get one for himself because he had three children.

Revenue Potential for Cybercab Owners

At the unveiling, Musk also said that Tesla will soon launch a service whereby owners of Tesla vehicles may rent out their vehicles to other riders through its ride-hailing network, Cybercabs.

He mentioned the possibility of purchasing a Cybercab "to operate it in the fleet, as a revenue generator." Donegan-Ryan made this statement.

Tesla Stock Takes a Hit

The debut of Tesla's Robovan and Cybercab, which Musk had promised will be produced before 2027 and cost less than $30,000, did not impress anyone.

Shares of Tesla fell as much as 10% in Friday's early trading, as several Wall Street analysts voiced their concerns about the company's business model and the non-availability of its cheaper electric vehicle (EV) that it plans to deliver next year.

Analysts Weigh In

For Wedbush analyst Dan Ives, "We believe last night will mark the inflection point from Tesla as an EV maker to a broader AI/Robotics/Disruptive Tech mobility player," the night was critical.

"That said, we strongly disagree with the notion that last night was a disappointment as we would argue the opposite seeing Cybercab with our own eyes and the massive improvements in Optimus which we interacted with throughout the evening," stated the CEO.