Tesla Shares Plummet Following Elon Musk’s Underwhelming Investor’s Day Event
Tesla shares plummeted by six percent at the end of the week following Elon Musk’s recent investor day presentation which was universally lambasted by investors despite favorable sentiment from experts.
Tesla shares dropped late in the week after the company’s investor day event last week, according to CNBC. Despite some analysts’ positive reactions to CEO Elon Musk’s presentation and the company’s overall forecast, Tesla’s stock fell more than 5.8% on Thursday.
Musk and his executives reiterated a 20 million vehicle yearly production goal during the event. The three-hour talk was followed by an hour-long session of questions and answers. Whilst some experts were dissatisfied by the event’s lack of specifics regarding any new products or services, it did provide investors with a long-term view. Investors were dissatisfied with the company’s presentation and the absence of any significant news.
“In a race to the bottom, we seriously question how the competition can keep up,” Morgan Stanley auto analyst Adam Jonas said in a note shared on Thursday. Jonas maintained his overweight rating on the stock with a $220 price target.
As per Goldman Sachs analyst Mark Delaney, “the event reinforced our positive view of the company’s long-term competitive positioning.” Additionally, he maintained a buy rating and a $200 price target. Delaney said “the lack of clarity beyond the comment that they’re working as fast as they can and it could be in the next couple of years is likely to be viewed as a disappointment to some,” but didn’t go into further details.
With the third version of his “Master Plan, Part Deux,” Musk updated his grandiose “Master Plan” from 2016, but the objectives of that plan, which included enabling Tesla owners to “earn money” on their cars while they would have otherwise been sitting idle, have not been met.
Investors and experts had hoped for more concrete details on new products or services given the rising competition in the electric vehicle sector from companies like Rivian and Lucid Motors.
“The path to $10 trillion is still very much alive,” Musk said. “We just need to execute really well and stay focused on the mission.”
Musk did make some announcements during the investor day, including the construction of a massive $10 billion auto factory that will create employment in Mexico rather than the United States.