Elon Musk regained his title as the richest man in the world in late February, thanks to a surge in Tesla stock. This has prompted us to look forward to Tesla's Investor Day to find out whether the company can live up to the recent uptick.
But Tesla held its annual investor event on March 1, ET, which reportedly fell short of investors' expectations, resulting in a 5.6% drop in the company's shares.
What Went Wrong with Tesla Investor Day
Markets Insider reports that Musk's "Master Plan 3" presentation at the event alluded to two new models without providing specific and concrete details. Investors had hoped to learn more about the possibility of a Tesla model with a lower price point.
However, the presentation provided little information on this topic. However, a presentation slide on Tesla's vehicle lineup hinted at two new models, one of which could be a third-generation electric vehicle.
Prior to the investor day, Reuters reported that Tesla intended to revamp the Model Y under Project Juniper, with production beginning in 2024. In addition, Tesla outlined its strategy to become the world's largest automaker by slashing production costs by 50 percent and selling 20 million vehicles annually by 2030.
Insider also cited that Zach Kirkhorn, Tesla's chief financial officer, stated that achieving this goal would require $175 billion in investments, a sixfold increase over Tesla's current expenditures. Although the lack of concrete information regarding new products, activist investor Ross Gerber tweeted that the event was a "huge tease" and that Tesla could deliver a sub-$30,000 model in the future.
The lack of clarity regarding Tesla's future products led to the company's stock price decline. However, some analysts are reportedly impressed by Tesla's long-term plans to become the world's largest automobile manufacturer.
Tesla's Promising Long-term Plans
At the Investor Day event, Tesla confirmed its expansion into Mexico and outlined a revamped manufacturing process to achieve its ambitious production goals. The Cybertruck pickup is anticipated to be released later this year. However, investors are still awaiting additional information about the two new models that were hinted at during the investor day.
In addition, the automaker has been retooling its Shanghai assembly plant in preparation for a redesigned version of its Model 3 sedan, codenamed "Highland." In September, the Model 3 Highland production is expected to begin in Shanghai.
With Highland, Tesla aims to reduce production costs and make the vehicle more appealing than the 2017 model.
More from the Tesla Event
The Cybertruck is one of the most impressive aspects of the Tesla event. People who went to California were greeted with the most recent prototype of the clean energy company's product, which included newly unveiled features.
Several modifications have been made to the Cybertruck, which has undergone a significant redesign since its earlier releases. The question of when it will be available for purchase by the general public remains.
Stay posted here at Tech Times.
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