© Reuters. Taken on December 19, 2022, this illustration shows the Tesla logo and the silhouette of Elon in his mask. REUTERS/Dado Ruvic/Illustration
Reuters – CEO Elon Musk and team’s four-hour presentation to impress investors waiting for affordable electric vehicles and plans with concrete timelines Shares of Tesla (NASDAQ:) Inc. fell 6 percent in the open on Thursday after a failure to do so.
Musk and a dozen or more executives laid out new plans to cut assembly costs in half and invest in a new plant in Mexico, and discussed innovations in the company’s management at its investor day on Wednesday.
But the event at which Musk revealed the EV maker’s “Master Plan 3” lacked details about timelines and new Tesla products.
“The market was gearing up for big announcements, like new models, perhaps more affordable,” said Russ Mould, investment director at AJ Bell.
“Tesla has been in tears so far in 2023. Then Musk put his head above the parapet at his Investor Day presentation and the stock is splashing…it lives up to the hype. It may not have been the case.”
The stock, which lost about two-thirds of its value in 2022, is up more than 60% so far this year.
“Timelines and cost details were limited, and the event didn’t come with Tesla-like surprises.” wells fargo (NYSE:) analyst Colin Langan said:
Tesla’s events have caused internet controversy in the past, with Musk’s dance moves at the company’s Berlin factory opening in 2022 and an event in China in 2020 going viral on social media.
The company’s plans to use 75% less silicon carbide vehicles without compromising vehicle performance or efficiency also weighed on the share price of semiconductor maker and supplier STMicroelectronics.
The reduction plan was “bad news for the entire silicon carbide production chain, and STMicro in particular,” said Brokerage Equita. It is estimated that in 2022 Tesla will account for 70% of STMicro’s semiconductor sales.