**Tesla's Robotaxi Event Sparks Major Revaluation of Stock Price**

Tesla investors are reeling after the anticipation surrounding the company's recent robotaxi event failed to meet expectations, leading to a sharp recalibration of the stock’s valuation. The event showcased concepts like the Cybercab and Robovan but left out key specifics about the rollout plan, regulatory approval, and the introduction of a more affordable electric vehicle (EV), leading Wall Street analysts to reassess their outlook.

The fallout was immediate and severe. On Friday, Tesla experienced a dramatic $60 billion reduction in its market valuation due to a significant selloff. This stark contrast reversed the momentum of the stock, which had surged over 70% following CEO Elon Musk's promotion of artificial intelligence (AI) initiatives in April. Before the robotaxi announcement, Tesla's market value had soared to over $760 billion, an astronomical figure compared to competitors General Motors (GM) and Ford (F), whose market caps are substantially lower.

Longtime Tesla advocate Nelson expressed caution, suggesting that Friday's market reaction might just be the beginning of a broader reevaluation. He highlighted an increasing gap between Tesla's stock price and its actual earnings performance, noting that the company's growth prospects in the medium term remain uncertain.

Bernstein analyst Toni Sacconaghi echoed these sentiments in a note to clients, emphasizing that Tesla’s valuation lacks solid grounding in its core business fundamentals. He pointed out that the robotaxi event offered little in the way of immediate deliverables or new revenue streams. Sacconaghi estimates that Tesla's auto business is valued at around $200 billion, which implies that a hefty $600 billion of its market cap is tied to its more speculative ventures, such as Full Self Driving (FSD), robotaxis, and humanoid robots.

The timing of these developments couldn't be worse for Tesla, which has been grappling with weak demand and intensifying competition. These pressures have battered sales and margins in recent quarters, and analysts warn that these trends are unlikely to abate soon. Guggenheim analyst Ron Jewsikow, who values Tesla stock at approximately $153 per share, believes investors will now shift their focus back to the company's fundamental operations, which he describes as "quite poor."

Jewsikow pointed out the precarious nature of Tesla’s valuation, given its trading at 100 times next year's earnings, despite minimal free cash flow. With Tesla shares plummeting 9% on Friday and down more than 17% over the past year, the company faces intense scrutiny. Investors and analysts alike will be watching closely as Tesla prepares to report its third-quarter earnings on October 23, a key test for the company’s ability to align its lofty valuation with its business realities.