At Thursday's event, Tesla (TSLA) unveiled its new humanoid robots Cybercab and Optimus, but investors remained unimpressed, sending the company's shares lower in Friday's trading session. Financial advisor and YouTube personality Kevin Paffrath, known as “Meet Kevin,” shares his insights on Tesla's current position and future prospects.

Paffrath argues that Tesla has given up its “medium-term recession protection.” The company could jeopardize its profit margins by prioritizing robotics and autonomous vehicles over promised affordable electric vehicles. He points out that with recession fears looming and Tesla's customer base potentially at risk during an economic downturn, coupled with stagnant growth in the European market and year-over-year performance, “they're now at a point where that's not the case.” is the case.” We have a new product that will help you survive in the medium term.

The financial advisor suggests that Tesla could have benefited if it had put the Cybercab up for sale immediately. This approach would have allowed individuals to purchase the vehicle and generate revenue for the company, while perfecting the technology to make it “fleet-ready.” Once the time comes, Tesla could offer existing owners to upgrade the hardware. However, because the event focuses on future technologies, fresh, market-ready products have yet to be introduced – triggering a drop in the stock price.

Paffrath expresses his disappointment: “I was really hoping that they would have learned from that when the Reuters rumors about abandoning the Model 2 started circulating and stocks collapsed in the spring. I would have thought logic would have told them: 'Okay, shareholders want a cheaper car.'” He emphasizes Tesla's manufacturing expertise and suggests that the affordable electric vehicle, even if it was just a stopgap measure before being taken over by robotaxis , would represent a “bridge” through a potential recession.

“If you have the ability to mass produce and you are an expert at manufacturing, make these cars! Even if you only do this for five or six years before robotaxis takes over, you have that bridge to get through a recession.” Paffrath advises. “Because what you have now are existing models and hope and not much in between. That doesn’t help you in a recession.”

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This post was written by Angel Smith