8:10 am, March 3, 2023
Elon Musk’s plans for the future of Tesla appear to have fallen on deaf ears after the firm’s share price plummeted yesterday.
The EV mogul outlined the company’s masterplan to investors on Wednesday, including a target to slash vehicle assembly costs in half.
The Twitter owner also revealed a goal of building 20 million vehicles a year by 2030 but the vision – dubbed his ‘Masterplan 3’ – has failed to excite backers in the way he’d hoped.
NBC reports that stock dropped 1.43 per cent before the event on Wednesday before tumbling a further five per cent in the immediate aftermath.
Experts say that investors may have been put off my a lack of detail in Musk’s announcement.
Russ Mould, investment director at AJ Bell, told Reuters: ‘The markets were primed for a big announcement, perhaps on something like a more affordable new model. It may just have been a case of failing to live up to the hype.’
Guido Petrelli, founder of Merlin Investor, added: ‘The biggest surprise coming out of Tesla investor day is that there wasn’t a surprise.’
Meanwhile, Bernstein analyst Toni Sacconaghi said the event was ‘somewhat disjointed and fairly technical’.
The blow comes after Tesla’s share price bounced back well in the opening months of 2023. The company’s stock has risen by around 60 per cent so far this year, after losing two-thirds of its value during a turbulent 2022.
So far, 2023 has seen the firm slash the price of new Model 3 and Y vehicles, causing used Tesla prices to tank, as explained to Car Dealer by valuations experts Cap HPI.
Earlier this week it was announced that the firm is to build a new factory in Nuevo León, Mexico, which will be first outside the United States, Germany and China.
Tesla stock closed Thursday priced at $190.90.
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