MARKET REPORT: £60 billion wiped from Tesla due to failed ‘Robotaxi’ launch

Tesla’s value fell by around £60bn after the launch of its self-driving Robotaxis failed.

In a highly publicized event, the electric vehicle maker’s boss, Elon Musk, revealed plans to have the Cybercab in production by 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 autonomous vehicles as a cross between Uber and Airbnb, with owners acting as owners of their autonomous vehicles when picking up and dropping off passengers.

But investors were unimpressed and shares fell as much as 10 per cent in early trading in New York, wiping some £60 billion off Tesla’s value.

“We found Tesla’s Robotaxi event to be disappointing and surprisingly lacking in detail,” said Bernstein analyst Toni Sacconaghi.

“Musk has painted a coherent vision and promise of autonomy for nearly a decade, and we and investors hoped last night’s event would provide a detailed roadmap to get there. But details were scant or nonexistent.

Analysts at Wedbush Securities said the “elephant in the room” was the absence of any discussion about the upcoming Tesla Model 2 next year.

Back in London, the FTSE 100 rose 0.2 per cent, or 15.92 points, to 8,253.65 and the FTSE 250 gained 0.3 per cent, or 56.56 points, to 20,764.93.

Vistry’s largest shareholder has increased its stake in a much-needed vote of confidence after a dismal week for the housebuilder.

US investment firm Browning West – whose founder Usman Nabi joined Vistry’s board in January – bought shares worth almost £7.5m.

That raised its stake in the FTSE 100 firm – formerly known as Bovis Homes – from 8.16 per cent to 9.08 per cent. The shares rose 2.4 per cent, or 22 pence, to 923 pence, but are still down 30 per cent this week. The stock plunged on Tuesday after the housebuilder warned profits would be hit by £115m because it underestimated development costs.

Recruitment firm Hays reported a 14 per cent drop in group rates in the first quarter to the end of September. But industry-wide hiring challenges have led the company to continue cutting costs across its business. The shares fell 1.1 per cent, or 0.95p, to 84.8p. Qinetiq has won a three-year contract potentially worth £150m with the Ministry of Defense (MoD).

The company will provide the MoD’s Defense Digital organization with engineering and program support to help the British Army communicate while on the frontline.

Qinetiq has been awarded an initial £39m for the deal, which comes with an option to extend for a further two years. The shares rose 0.8 per cent, or 3.4p, to 450.2p.

Fund manager Prime Minister Miton warned that confidence among investors has been hit by “significant uncertainty” ahead of the budget at the end of the month.

Customers withdrew £133m of cash in the fourth quarter to 30 September. Despite this, Premier Miton’s assets rose 9 per cent to £10.7 billion after a strong summer. The shares rose 2.6 per cent, or 1.5p, to 60p.