Tesla Inc (NASDAQ: TSLA) shares fell 6% to $353.71 on Friday, extending a decline of 29% from all-time highs set in December. GLJ Research analyst Gordon L. Johnson maintained a Sell rating with a price target of $24.86, signaling potential for a 93% further decline.

Johnson argued that the recent Cybercab event failed to address critical business questions regarding vehicle volume, pricing, and regulatory rules. He noted that while the vehicle is operational in Austin, the stock is priced for a network rather than a car.

Analyst View on Cybercab Event

Johnson described the event as featuring a curated group of attendees who rode in a two-seater without steering wheels or pedals. He stated that no new details were provided on Tesla’s network capabilities.

"A car showed up. A business didn’t," Johnson said in his investor note. He acknowledged progress from the vehicle being a soundstage prop to a production unit in a geofenced area but emphasized the lack of commercial clarity.

Historical Post-Event Performance

The analyst highlighted a pattern of negative returns following Tesla’s flagship events since Battery Day in September 2020. Across the prior ten events, the average return was -3.2% the next day and -5.2% over the following week.

Johnson expects the current decline to exceed these historical averages. His $24.86 target is based on a 10x price-to-earnings multiple applied to GAAP-estimated earnings per share of $2.49.

What the Numbers Show

The divergence between the current share price of $353.71 and the analyst’s target of $24.86 highlights a significant valuation gap. The target implies that the market’s current pricing does not reflect the operational reality presented at the Cybercab event, according to Johnson’s analysis.

Tesla Inc (NASDAQ: TSLA) shifted focus from vehicle specifications to artificial intelligence during its Cybercab launch. The company highlighted over one million miles of unsupervised robotaxi operation as evidence of its AI-first approach.

CEO Elon Musk expanded the conversation beyond roads less than 24 hours later. He called autonomous flight an important next step for electric aircraft, linking the robotaxi strategy to a broader transportation vision.

AI Before Everything Else

Executives framed the Cybercab not as a new car but as a deployment of an intelligent agent. Vehicle software chief Ashok Elluswamy stated that self-driving is an intelligence problem rather than a sensor issue. He argued that no sensor can predict the future, requiring an AI system to understand and anticipate scenarios.

The company relies on camera inputs and vast real-world driving data instead of lidar or radar. Tesla claimed its models have accumulated more than a thousand lifetimes of experience through billions of customer miles. This data allows the system to recognize rare driving situations before they occur.

A Clue Beyond Cars

Musk’s comments on Heart Aerospace’s battery-electric X1 aircraft demonstrated consistency in this messaging. He wrote that making such aircraft autonomous is an important next step. This remark echoed the launch argument that reliable AI understanding of the physical world applies beyond cars.

Investors should watch whether this AI platform extends to other transport modes. The Cybercab serves as the first large-scale demonstration of this strategy. Success here could validate Tesla’s view of autonomy as a cross-modal technology rather than just a automotive feature.