Tesla shares fell after Wednesday’s investor day lacked details about its upcoming vehicles.
Livestreamed from Tesla’s electric vehicle manufacturing facility in Texas, CEO Elon Musk focused much of his presentation on the company’s “Master Plan 3,” outlining what steps must be taken to transform the Earth into a fully sustainable energy infrastructure. The company announced the upcoming vehicles but said the details will come at a later date.
“It’s meant to be a long-term kind of discussion as opposed to, you know, what production is going to be for the rest of the quarter,” Musk said.
Tesla shares closed at $202.77 on Wednesday, down 1.43% from the previous day, and continued to fall in after-hours trading. Shares on Thursday were trading up nearly 7% at 11:15 am Eastern.
A cheaper Tesla in the works?
Tesla made headlines earlier this year when it slashed prices for current models by up to 20%. While there was talk of Tesla sharing plans for a more affordable car at investors’ day, the company said the unveiling of the next-generation car would come at a later date.
The company also did not share significant updates on Cybertruck or robotaxis deliveries as investors expected.
The event “wasn’t the sizzle we expected or hoped for,” according to a Thursday note from Truist Securities analyst William Stein.
Musk last year said that Telsa was working on a next-generation car, announcing that it would be smaller but cheaper than its Model 3 and Model Y. Prices for both cars start at $42,990 and $54,990, each.
Musk confirmed that the automaker plans to build a plant in Mexico, a popular location for automakers looking to build models more cheaply. The company plans to use the plant — along with other Tesla factories — to build next-generation vehicles.
Goldman Sachs analyst Mark Delaney said the details shared at the event should boost investors’ confidence in Tesla’s ability to cut costs by 50% with the next-generation platform, but noted that investors are hoping for more details on when shipments will begin.
“The lack of clarity beyond the comment that they are working as fast as they can and it will be done in the next couple of years is likely to be viewed as a disappointment by some,” Delaney said in a note Thursday. .
Featuring Tesla’s leadership team
Other Tesla leaders took to the stage to discuss topics such as the company’s charging network and manufacturing process.
“One of the biggest pushbacks we’re getting from investors regarding our strong stance on (Tesla) is the ‘key executive risk’ associated with Elon Musk,” Stein said in the note. “Perhaps by design, analyst day was not dominated by Musk but instead largely delivered by a strong group of executives, each impressive in his own right.”
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