Elon Musk sends Tesla shares into reverse: Four-hour presentation on cost-cutting fails to impress investors
Tesla shares fell 5.9 per cent yesterday after chief executive Elon Musk’s four-hour presentation failed to impress investors waiting for an affordable electric vehicle.
Musk and more than a dozen Tesla executives laid out fresh plans to cut assembly costs by half and invest in a plant in Mexico.
But the event where Musk revealed the EV maker’s ‘Master Plan 3’, was short on details of new products.
Master plan: Elon Musk (pictured) and more than a dozen Tesla executives laid out fresh plans to cut assembly costs by half and invest in a plant in Mexico
‘The markets were primed for a big announcement, perhaps on something like a more affordable new model,’ said Russ Mould, investment director at AJ Bell.
‘It may just have been a case of failing to live up to the hype.’
The stock, which lost two-thirds of its value in 2022, is up more than 60 per cent so far this year.
‘The timeline and cost details were limited, and the event lacked a Tesla-like surprise,’ Wells Fargo analyst Colin Langan said.
Tesla’s events have created a stir in the past, with Musk’s dance moves at the opening of the Berlin plant in 2022 and an event in China in 2020 going viral on social media.