Tesla’s Investor Day held a presentation for investors on Wednesday after the markets closed. It was expected that Elon Musk will shed light on his big vision for the giant electric vehicle maker. Their fans were eager to learn substantial things about the much-awaited Cybertruck or an affordable “Model 2” EV.
However, the live stream that lasted three hours didn’t provide much information about there expansion plans for its product line-up besides its current offerings. There were no major announcements except confirmation of a new Gigafactory there aim to build in Monterey, Mexico. Presumably, Investors did take notice, with stocks dipping nearly 6 percent in after-hours trading.
Here are 2 Best Points Tesla Investor Day leaves Investors Unimpressed;
Shares Decline after Presentation
Tesla’s shares dropped by 6.5% on Thursday after the 5.5% fall that happened following the close of trading on 1st March. The company said the platform will help lower costs by 50%, but other specifics were not provided. This master plan did not impress some analysts.
To respond, Musk tweeted, “Detailed whitepaper with calculations & assumptions to be released by Tesla shortly. “The meeting with shareholders, car owners, analysts, and the media lacked in-depth information on prices and details regarding the company’s plans of producing vehicles using the lower-cost platform.
Tesla Bulls Hold Their Ground
Morgan Stanley analyst, Adam Jonas, a bull, believes that Tesla’s “audacious efforts on vertical integration are about to pay off.” He also believes that it will be tough for other EV manufacturers to compete, as he maintains a target price of $220 per share.
“We leave the investor day at Giga Austin asking which competitors can keep up with the planned spending of upwards of $170bn for the build-out of their manufacturing base for EVs and stationary storage,” said Adam.
The critics, on the other hand, dislike the idea of manufacturing a $25,000 model to lure more drivers into purchasing an EV. Greg Wester, a product manager who owns a 2018 Model 3 and no shares of Tesla has tweeted, “Tesla is like BMW or Audi. Nobody wants to see a premium brand sell an $18k car.”
Dan Ives, an analyst at Wedbush thinks positively of an investor day, saying that the company is beating its competitors. “For investors, it’s crystal clear just how far ahead they are ahead of the rest of the auto industry when it comes to producing/scaling EVs with last night another display of the pure breadth and scale globally,” he tweeted. “This was a showcase event for Musk and the community.”
