The recent, highly anticipated reveal of the Tesla Cybercab, a fortnight ago, was expected to be an important moment for the industry, and potentially even revolutionize the concept of urban mobility.

However, instead of being widely acclaimed, Cybercab’s reveal left many people disappointed and disappointed.

Indeed, Tesla’s stock price immediately fell. Meanwhile, rivals like Uber and Lyft have won. Telsa’s stock price has since recovered on optimistic sales forecasts for 2025, but doubts remain about Tesla’s pivot to autonomous technology.

So what exactly went wrong?

Overrated

The enormous hype leading up to the event was a significant factor at play. For months, Tesla had been building anticipation with teaser videos, cryptic social media posts and promises of groundbreaking innovation.

Much of this hype revolved around the idea that the Cybercab would not be just another electric vehicle, but an entirely new concept in urban mobility: an autonomous electric taxi capable of navigating cities without human intervention.

It was supposed to be a game-changer, combining cutting-edge artificial intelligence, EV technology and innovative design to create a seamless, fully autonomous ride-sharing experience.

Faced with such promises, expectations have soared. Investors, technology enthusiasts, electric vehicle enthusiasts and urban planners hoped that the Cybercab would usher in a new era of on-demand driverless mobility, smart cities and efficient transportation.

Unfortunately, when the glitzy reveal finally happened, many felt that the reality didn’t live up to the sky-high expectations.

A design that divides

Then there was the design of the Cybercab. Hype leading up to the reveal suggested that the vehicle would feature a sleek, futuristic aesthetic, emphasizing minimalism, comfort and practicality for city dwellers.

However, when finally shown to the public, the Cybercab’s angular, boxy exterior looked more like an early 2000s sci-fi movie prop than the cutting-edge vehicle people were expecting.

Inside, things seemed rather dull. Even though the Cybercab featured digital interfaces and comfortable seats, it didn’t offer the type of revolutionary user experience many expected.

The result was a product that failed to deliver on its promise of being a futuristic, comfortable and efficient urban transportation solution.

Autonomic apathy

Perhaps the biggest source of disappointment was the Cybercab’s autonomous capabilities, or rather lack thereof.

Before the reveal, much of the excitement came from the belief that the Cybercab would be one of the first commercially available fully autonomous vehicles, capable of navigating complex urban environments without human intervention.

In reality, autonomous vehicle technology was much less advanced.

Although the Cybercab featured some degree of automation, it was far from the fully autonomous vehicle promised. The reveal featured a vehicle capable of performing basic tasks such as lane keeping, adaptive cruise control, and limited automatic parking.

But these features are already standard on many high-end cars. The Cybercab still seemed heavily reliant on human monitoring and intervention, especially in complex urban environments with unpredictable traffic patterns, pedestrians, and cyclists.

In this, Tesla seemed to lag behind Waymo.

Financial markets in particular have been disappointed by the perceived gap between expectations of full autonomy and the reality of partial automation.

The hope was that the Cybercab would represent a leap forward in autonomous driving technology, but this reveal demonstrated that we are still years away from true autonomy.

Tesla has talked about being four years away from ramping up production, but the reality could well be much longer than that given Tesla’s track record of missing deadlines.

Investors realized we still had years to go before we reached full self-sustainability and the stock price immediately took a hit.

Regulatory approval is a major challenge for any new autonomous vehicle. Fully autonomous vehicles require rigorous testing and must comply with a multitude of safety standards, which can delay their introduction to the market by several years.

The Cybercab was far from ready for such approval, as the vehicle’s autonomous systems were not yet reliable enough for unattended operation in real-world conditions.

Cost issues

Concerns remain over the likely cost structure and price of the vehicle. One of the Cybercab’s biggest selling points is its affordability as a shared transportation option.

Still, without a steering wheel or pedals, it was hard to imagine how the platform could be shared with, say, a regular, low-cost “Model 2” that markets really expect from Tesla.

With the current electric vehicle market already facing pricing issues, the introduction of a technologically complex new vehicle like the Cybercab could well present significant financial risks.

Is this really what the market wants?

Finally, the question arose whether the Cybercab actually offers what urban markets currently want.

The revelation failed to offer concrete solutions to problems like reducing traffic congestion, improving public transportation integration, or providing affordable mobility options for underserved communities.

Instead, the Cybercab emerged as a luxury product designed for the technological elite, rather than a practical solution to real urban transportation problems.

A Caution Between Hype and Reality

Overall, the disappointing market reaction to Cybercab’s reveal serves as a cautionary tale about the dangers of overselling a product before it’s ready for market.

While the idea of ​​an electric, fully autonomous urban transportation vehicle is undoubtedly exciting, the Cybercab ultimately failed to live up to the expectations previously raised.

The disappointing design, limited battery life capabilities, and doubts about feasibility all contributed to the feeling of disappointment after the reveal.

For Tesla, it’s a reminder that while an ambitious vision can generate a lot of enthusiasm and investor support, it must ultimately be supported by tangible progress and a clear understanding of market needs.

As the race to develop autonomous vehicles continues, Cybercab’s revelation highlights the challenges that remain and the importance of managing expectations in an industry where technological advances can take much longer to materialize than expected. many do not hope so.

Article by David Bailey, Professor of Business Economics at Birmingham Business School