Tesla announced a new version of its “full self-driving” technology on Tuesday morning, but the news was a bit of a letdown for investors who were hoping for a much bigger reveal.
Over the weekend, the company had fueled a wave of speculation with a pair of mysterious teaser videos. One showed a spinning, logo-emblazoned part, and the other featured the headlights of a car in the dark, both ending with the date “10/7.” The clips sent the internet buzzing and Tesla’s stock climbing, as fans and investors eagerly awaited the announcement of a new car.
The big hope was for the reveal of a long-awaited, more affordable version of the best-selling Model Y. With a key U.S. tax credit now expired, a cheaper car is seen as crucial for Tesla to maintain its sales momentum. Others were hoping for an update on the next-generation Roadster, a high-performance sports car that CEO Elon Musk has been promising for years.
Instead, they got a software update. While improvements to the self-driving system are important, it’s not the exciting new product that Wall Street was looking for. Tesla hasn’t released a new model for sale since the polarizing Cybertruck in late 2023, and that vehicle has been plagued by a series of recalls, failing to capture the same mass-market appeal as the Model 3 and Model Y. For now, the mystery of what was in those teaser videos remains, and the wait for Tesla’s next big thing continues.
