March 2 (Reuters) – Shares in Tesla Inc ( TSLA.O ) fell about 7% on Thursday, after Chief Executive Elon Musk and his team’s four-hour presentation failed to impress investors looking for a announcement of an affordable electric car and a plan with a concrete timeline.
Musk and more than a dozen executives outlined new plans to cut assembly costs in half, invest in a new plant in Mexico and discuss the company’s innovation in management. its operations on its investment day on Wednesday.
However, the event, where Musk unveiled EV’s ‘Master Plan 3’, was short on details about the timeline or any new Tesla products.
“The markets are being prepared for a big announcement, maybe something like a cheaper new model,” said Russ Mould, investment director at AJ Bell.
“Tesla is crying until now in 2023. Then Musk raises his head above the parapet at an investor day presentation and the shares are sputtering…
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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.
“Musk and company failed to put the cherry on top — an actual look at a lower-priced Tesla, if only in concept,” said Jessica Caldwell, executive director of insights at Edmunds.
Tesla events have created a stir on the internet in the past, with Musk dancing to the opening of the company’s Berlin plant in 2022 and an event in China in 2020 going viral on social media.
The company’s plan to use 75% less silicon carbide in cars without compromising performance or vehicle efficiency also weighed on semiconductor maker and shares of suppliers STMicroelectronics ( STM.PA ) and Wolfspeed Inc ( WOLF. N).
The reduction plan is “bad news for the entire silicon carbide production chain and especially for STMicro,” Brokerage Equita said.
Shares of US-listed STMicrelectronics fell about 6%, while those of Wolfspeed fell 12% in early trading.
Reporting by Nivedita Balu and Akash Sriram in Bengaluru; Additional reporting by Carlo Giovanni Boffa in Gdansk; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty
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