Tesla Inc’s (TSLA.O) stock fell about 7% on Thursday after Chief Executive Elon Musk and his team’s nearly four-hour presentation failed to impress investors hoping for an announcement about an affordable electric car.
At Tesla’s investor day on Wednesday, Musk and more than a dozen executives unveiled new plans to cut assembly costs in half, invest in a new plant in Mexico, and discuss the company’s innovation in operations management.
The event, where Musk revealed the EV maker’s ‘Master Plan 3,’ however, was short on details about the timeline for the concepts presented and any new Tesla products.
“The biggest surprise coming out of Tesla investor day is that there wasn’t one,” says Merlin Investor founder Guido Petrelli.
Tesla’s stock has risen more than 60% this year after losing roughly two-thirds of its value in 2022.
“The markets were expecting a big announcement, possibly about a more affordable new model… It could simply be a case of failing to live up to the hype “AJ Bell investment director Russ Mould stated.
“Musk’s Master Plan 3 was more of a message of hope for widespread electrification than a roadmap for Tesla,” said Bernstein analyst Toni Sacconaghi of the event, which he described as “somewhat disjointed and fairly technical.”
Tesla events have previously caused a stir on the internet, with Musk’s dance moves at the company’s Berlin plant opening in 2022 and an event in China in 2020 going viral on social media.
The company’s plan to use 75% fewer silicon carbide vehicles while maintaining performance and efficiency weighed on semiconductor makers and suppliers STMicroelectronics (STM.PA) and Wolfspeed Inc. (WOLF.N).
The reduction plan is “bad news for the entire silicon carbide production chain, particularly for STMicro,” according to brokerage Equita.
