Mar 2 (Portal) – Shares of Tesla Inc (TSLA.O) fell about 7% on Thursday after the four-hour presentation by Chief Executive Elon Musk and the team failed to impress investors, who were following an announcement for an affordable Electric car and a plan with it looked out for a concrete timetable.
Musk and more than a dozen executives unveiled new plans to cut assembly costs in half, invest in a new plant in Mexico, and discussed the company’s innovation in managing its operations at Wednesday’s investor day.
However, the event, where Musk unveiled the electric vehicle maker’s “Master Plan 3,” offered few details on the schedule or new Tesla products.
“Markets were primed for a big announcement, maybe something like a more affordable new model,” said Russ Mold, investment director at AJ Bell.
“Tesla has been on the go so far in 2023. Then, in an Investor Day presentation, Musk raises his head over the parapet and the stock sputters… It might just have been a case of not living up to the hype.”
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The stock, which lost about two-thirds of its value in 2022, is up more than 60% so far this year.
The stock fell over 60% last year
“Musk and company failed to put on the icing on the cake — an actual look at a cheaper Tesla, if only conceptually,” said Jessica Caldwell, executive director of insights at Edmunds.
Tesla’s events have generated internet buzz in the past, with Musk’s dance moves going viral on social media at the opening of the company’s Berlin plant in 2022 and an event in China in 2020.
The company’s plan to use 75% fewer silicon carbide vehicles without sacrificing the car’s performance or efficiency also weighed on the semiconductor maker and shares in suppliers STMicroelectronics (STM.PA) and Wolfspeed Inc (WOLF.N).
The reduction plan is “bad news for the entire silicon carbide production chain and for STMicro in particular,” Brokerage Equita said.
U.S.-listed shares of STMicroelectronics fell about 6%, while Wolfspeed fell 12% in early trade.
Reporting by Nivedita Balu and Akash Sriram in Bengaluru; Additional reporting by Carlo Giovanni Boffa in Gdansk; Edited by Sriraj Kalluvila and Saumyadeb Chakrabarty
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