Tesla's stock drops 7% following the reveal of the prototype for the self-driving taxi

Shares of the leading American electric car manufacturer "Tesla" fell by more than 6% in pre-market trading on Friday following a disappointing reveal of Tesla's self-driving taxi prototypes, which the company has named "Cybercab".

Investor disappointment came after billionaire and company CEO Elon Musk announced limited details about the prototypes for the self-driving taxis, with many expecting more information on how the car manufacturer plans to execute the vehicle.

The CEO revealed "Cybercab" on Thursday evening as a sleek two-seater sedan, stating that production could begin in 2026, and noted that the final cost of the car could be less than $30,000.

However, the event did not address how Tesla would make the leap from selling advanced driver-assistance features to fully self-driving vehicles, and Musk's presentation lacked technical details and ignored key topics, including how the vehicle fleets would be regulated or whether the company would own and operate its own fleet of Cybercabs.

This came after Musk rode one of the vehicles on his way to the stage during the Tesla event held in Burbank, California, where he also showcased a futuristic concept for a "RoboVan", which Musk mentioned could transport up to 20 people and featured updated versions of Tesla's humanoid robot, named Optimus.

In trading, Tesla's stock (NASDAQ: TSLA) dropped 6.9% in pre-market trading on Friday to record $222.9, after the stock had risen nearly 70% since mid-April in anticipation of the self-driving taxi launch event.