Why Tesla shares fell 8% on Friday

Tesla (NASDAQ:TSLA) fell 8.2% in early trading Friday through 10:05 a.m. ET as investors gave two thumbs down to the company's “We, Robot” presentation in Hollywood last night.

In no particular order, Tesla introduced a bartender Tesla bot…

an autonomous robovan that can carry 20 passengers…

and a two-door Cybercab (still confusingly called “Robotaxi” on the company’s website).

Musk's magic number: $30,000

In an event full of glitz but little detail, Tesla CEO Elon Musk set a $30,000 sticker price for his new, fully autonomous Cybercab and a $20,000 to $30,000 price tag for the Tesla Bot. No price was suggested for the larger Robovan, which was also described as autonomous. When asked when the products will actually be available for purchase, Musk only said that he hopes to bring the Cybercab to market by 2026.

Here's the problem: while the Tesla bots shown at the presentation no longer looked like they were being controlled by humans in robot suits (like the last time we saw them), last night they still looked like they were being remotely controlled by humans . They did not appear to be autonomous.

As for the $30,000 sticker price on the Cybercab, well, it's been more than five years since Musk promised us an electric car that costs even less – $25,000 – and we still don't have that seen. Meanwhile, in China, Tesla rival BYD now sells more electric cars than Tesla. And BYD's new Seagull EV costs less than $10,000.

Even with a 100 percent tariff, BYD cars are cheaper than the cheapest Tesla on offer.

Is Tesla stock a buy?

I have to admit, for a Tesla fan, this all sounds pretty daunting. While Musk's promises sound good, they also sound like they're a time-out in the future. Meanwhile, Tesla stock is selling for 67 times earnings and 448 times its severely depleted free cash flow. Oh, and analysts surveyed by S&P Global Market Intelligence forecast profits will rise just 15% per year over the next five years.

I fear that this will make buying Tesla shares too expensive.

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The story continues

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in Tesla and recommends them. The Motley Fool has a disclosure policy.

Why Tesla shares fell 8% on Friday was originally published by The Motley Fool