At Thursday's event, Tesla (TSLA) unveiled its new Cybercab and Optimus humanoid robots, but investors remained unimpressed, sending the company's stock lower in Friday's trading session. Financial adviser 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 "mid-term recession protection." The company may be jeopardizing its profit margins by prioritizing robotics and autonomous vehicles over the promised affordable electric vehicle. He points out that with recession fears looming and Tesla's customer base potentially at risk during an economic downturn, coupled with stagnating growth in the European market and flat year-over-year performance, "now you're in a place where you don't have a new product to help you survive the medium term."

The financial adviser suggests that Tesla could have benefited from offering the Cybercab for sale immediately. This approach would have allowed individuals to purchase the vehicle and generate revenue for the company while it perfects the technology to make it "fleet eligible." Once ready, Tesla could then offer to update hardware to existing owners. However, the event's focus on future technologies has yet to introduce fresh, market-ready products — triggering a downturn in the stock price.

Paffrath expresses his disappointment: "I was really hoping that they would've learned from when the Reuters rumors circulated about not doing the Model 2, and the stock tanked in the spring. I would've thought logic would've told them, 'Okay, the shareholders want a cheaper car. Just give it to them!'" He emphasizes Tesla's manufacturing expertise, suggesting that even if the affordable EV were only a stopgap measure before robotaxis take over, it would provide a "bridge" through a potential recession.

"If you can mass manufacture and you're such an expert at manufacturing, manufacture these cars! Even if you're only going to do so for 5 or 6 years before robotaxis take over, have that bridge to get you through a recession," Paffrath advises. "Because now what you've got is existing models and hope and not much in between. That doesn't help you in a recession."

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Angel Smith