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US tariffs on EU wine and spirits set at 15% from August 1, Brussels says
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Published in Food and Wine on Thursday, July 31st 2025 at 8:43 GMT by The Financial Times🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Bloc members including France and Italy are pushing for an exemption as negotiations continue
Tesla’s Robotaxi Unveiling Fails to Ignite Investor Enthusiasm, Shares Tumble
In a highly anticipated event that promised to redefine the future of autonomous transportation, Tesla chief executive Elon Musk took the stage in California to unveil the company's latest innovations in self-driving technology. Dubbed "We, Robot," the presentation was meant to showcase Tesla's strides toward a fleet of robotaxis—driverless vehicles that could revolutionize urban mobility, generate new revenue streams, and solidify the electric carmaker's position as a leader in artificial intelligence and robotics. However, the event, streamed live to millions and attended by a select group of enthusiasts and analysts, left many underwhelmed, leading to a sharp decline in Tesla's stock price and raising fresh questions about the company's ability to deliver on its ambitious promises.
The evening began with Musk arriving in a sleek, futuristic vehicle called the Cybercab, a two-seater prototype designed without a steering wheel or pedals, emphasizing its fully autonomous nature. Priced under $30,000 and slated for production before 2027, the Cybercab was positioned as an affordable entry into the robotaxi market, with operating costs projected at just 20 cents per mile. Musk painted a vivid picture of a world where individuals could summon these vehicles via an app, much like Uber, but without human drivers, potentially disrupting the ride-hailing industry dominated by companies like Uber and Lyft. He estimated that robotaxis could achieve utilization rates far higher than personal cars, which sit idle 90% of the time, thereby making them economically viable on a massive scale.
Complementing the Cybercab was the introduction of the Robovan, a larger, boxy vehicle capable of carrying up to 20 passengers or cargo, aimed at applications like public transit or delivery services. Musk also teased the Optimus robot, Tesla's humanoid automaton, which made appearances serving drinks and performing simple tasks during the event. Demonstrations included robots dancing and interacting with attendees, hinting at broader applications in homes and workplaces. Musk reiterated his vision of a "useful humanoid robot" entering limited production next year, with wider availability by 2026, potentially transforming labor markets by handling repetitive or dangerous jobs.
Yet, despite the spectacle—complete with Hollywood-style production values, neon lights, and a nod to sci-fi classics like "I, Robot"—the presentation lacked the concrete details that investors crave. There were no firm timelines for regulatory approval, no detailed financial projections for the robotaxi business, and scant information on how Tesla plans to navigate the complex web of safety standards and legal hurdles that have plagued autonomous vehicle development. Musk's timelines have historically been optimistic; Tesla's Full Self-Driving (FSD) software, promised for years, still requires human supervision and has faced scrutiny from regulators following accidents. Analysts noted the absence of updates on key metrics, such as the number of miles driven autonomously or partnerships with cities for pilot programs.
The market reaction was swift and unforgiving. Tesla shares, which had risen in anticipation of the event, plummeted more than 8% in after-hours trading, wiping billions from the company's market capitalization. This drop reflects broader investor fatigue with Musk's pattern of overpromising and underdelivering on futuristic projects. While Tesla has dominated the electric vehicle (EV) market, with record deliveries and a loyal fanbase, its valuation—hovering around $700 billion—relies heavily on narratives beyond car sales, such as AI, energy storage, and now robotics. Critics argue that without tangible progress, these narratives risk unraveling.
To understand the disappointment, it's worth contextualizing Tesla's robotaxi ambitions within the competitive landscape. Rivals like Waymo, owned by Alphabet, have already deployed driverless taxis in select U.S. cities, logging millions of miles with paying customers. Cruise, backed by General Motors, is resuming operations after a regulatory setback, while Chinese firms like Baidu's Apollo Go are expanding rapidly in Asia. Tesla's advantage lies in its vast fleet of vehicles already on the road, equipped with cameras and sensors that collect data for AI training. Musk claimed that unsupervised FSD could roll out in Texas and California next year, potentially allowing existing Tesla owners to add their cars to a robotaxi network for passive income. However, this hinges on software improvements and regulatory green lights, both of which remain uncertain.
Musk addressed safety concerns obliquely, asserting that autonomous vehicles would be "10 times safer than human drivers." He cited Tesla's data, which shows lower accident rates for vehicles using Autopilot, but skeptics point out that these figures are self-reported and not independently verified. The National Highway Traffic Safety Administration (NHTSA) has investigated multiple Tesla crashes involving Autopilot, and a recent fatal incident in Seattle has intensified calls for stricter oversight. Moreover, the robotaxi model raises ethical questions: Who is liable in an accident? How will insurance work? Musk's response was characteristically bold, suggesting that Tesla's AI would outperform humans, but without specifics, it did little to assuage doubts.
Financially, the robotaxi vision is tantalizing. Analysts at Morgan Stanley have valued Tesla's potential ride-hailing network at hundreds of billions, assuming it captures a significant market share. Musk projected that robotaxis could boost vehicle utilization from 12 hours a week (for personal cars) to 50-60 hours, generating far higher returns. For individual owners, the pitch is even more appealing: Earn money while your car works for you, perhaps covering the cost of ownership entirely. Yet, execution risks abound. Building a charging and maintenance infrastructure for a global fleet is no small feat, and competition from established players could erode margins.
The event also highlighted Tesla's broader challenges. EV sales growth has slowed amid economic headwinds, rising interest rates, and competition from legacy automakers like Ford and Volkswagen, who are ramping up their electric offerings. Tesla's profit margins have compressed due to price cuts, and its energy business, while promising, is not yet a major revenue driver. Musk's distractions—running multiple companies, including X (formerly Twitter) and SpaceX—have led some investors to question his focus. Recent controversies, such as his political endorsements and public feuds, have also polarized stakeholders.
Looking ahead, Tesla's path to robotaxi dominance will depend on several factors. First, technological breakthroughs: The company must prove that its vision-based AI, which relies solely on cameras rather than lidar or radar like competitors, can handle edge cases like bad weather or construction zones. Second, regulatory progress: Gaining approval for fully driverless operations requires navigating a patchwork of state and federal rules, not to mention international standards. Third, scaling production: Manufacturing Cybercabs at volume while maintaining quality will test Tesla's supply chain, already strained by semiconductor shortages and battery constraints.
Investors are now recalibrating expectations. Some, like ARK Invest's Cathie Wood, remain bullish, viewing the event as a stepping stone in Tesla's long-term journey. Others, however, see it as another example of hype over substance. Wedbush Securities analyst Dan Ives, a longtime Tesla supporter, called the presentation "underwhelming" but maintained that the underlying technology could still be game-changing. The consensus seems to be that while Musk's vision is inspiring, the road to realization is fraught with obstacles.
In the aftermath, Tesla's stock has partially recovered in early trading, but the volatility underscores the high-stakes nature of the company's bets. For Musk, who has built his empire on audacious goals, the robotaxi event was a reminder that innovation alone isn't enough—delivery is key. As one analyst put it, "Elon sells dreams, but markets buy results." Whether Tesla can bridge that gap will determine not just its future, but the trajectory of autonomous mobility worldwide.
This unveiling comes at a pivotal time for the auto industry, which is grappling with the transition to electrification and autonomy amid geopolitical tensions, supply chain disruptions, and shifting consumer preferences. Tesla, once the undisputed EV king, now faces a more crowded field. Chinese manufacturers like BYD are undercutting on price, while luxury brands like Mercedes-Benz invest heavily in self-driving tech. Musk's response has been to double down on differentiation through AI and robotics, positioning Tesla as a tech company rather than a mere carmaker. The Optimus robot, for instance, could extend Tesla's reach into new sectors, from manufacturing to elder care, potentially creating a diversified revenue base.
Critics, however, warn of overextension. Tesla's R&D spending is immense, and without near-term payoffs, cash flow could become an issue. The company's debt levels, while manageable, add pressure to perform. Moreover, intellectual property battles loom; Tesla has accused competitors of poaching talent and ideas, while facing its own lawsuits over Autopilot.
Ultimately, the "We, Robot" event encapsulated the Elon Musk paradox: boundless ambition coupled with execution risks. For believers, it's the dawn of a new era. For skeptics, it's another chapter in a saga of delayed dreams. As Tesla pushes forward, the world watches, knowing that success could reshape transportation, while failure might temper the hype that has fueled its meteoric rise. (Word count: 1,248)
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[ https://www.ft.com/content/34c8c907-8999-4088-8356-d4d70a43de58 ]
