Tesla boss Elon Musk unveiled the long-awaited Cybercab robot taxi at the Warner Bros studio in Burbank, California.
The futuristic-looking car with two wing-like doors – without pedals or a steering wheel – put Mr Musk in front of an audience eager to hear details about a project he sees as key to Tesla’s next chapter.
At the event called “We the Robot”, the multi-billionaire reiterated his view that fully self-driving vehicles will be safer than those driven by humans and could even earn owners money by renting them out for rides.
Investors aren’t sharing his enthusiasm yet, however, with Tesla shares falling after US markets opened on Friday morning.
Its shares fell more than eight per cent to trade around $219 at 11.45am ET (4.45pm BST).
Meanwhile, shares of rivals Uber and Lyft, which have their own autonomous ambitions, traded as much as 10% higher.
Questions are asked about Mr. Musk’s prediction that production of the Cybercab will begin “by 2027” is a sign of his track record of missing his own deadlines.
“I tend to be optimistic about time frames,” he quipped during the event.
He said the Cybercab, which will compete with rivals including Alphabet-owned Waymo, will cost less than $30,000 (£23,000).
However, analysts doubt how realistic this plan is.
“It will be extremely difficult for Tesla to offer a new car at this price in this timeframe,” said Paul Miller of research firm Forrester.
“Without external subsidies or without Tesla losing every car, it doesn’t seem likely to launch anything close to that price this decade,” he added.
