Elon Musk hasn't convinced investors - Tesla shares down almost 7% after Tesla Investor Day

Tesla held Investor Day 2023. The third such event in 17 years did not fully meet investors' expectations, causing the carmaker's shares to fall again.

Here's What We Know

Tesla showed two Optimus humanoid robots assembling a third humanoid, showed a new pre-production Cybertruck, announced it had managed to make 4 million electric cars, talked about building a plant in Mexico, its desire to make 20 million cars a year and proposed a plan to completely phase out fossil fuels. The latter would cost $10 trillion to implement.

However, many were expecting the company to talk about a new electric car that would cost $25,000-30,000. But that did not happen. Nor did they pay any attention to the new models that are due to appear in Tesla's range in the coming years. In order to increase production to 20 million units, the company will have to expand the range to at least 10 models.

Also, the company hasn't given a clear start date for production of the Cybertruck electric pickups yet. The deadline has already been postponed, so the promise to launch mass production sometime in the coming summer looks very vague. Also, Tesla executives aren't talking about unmanned taxis or raising capital.

These are key factors that have alerted investors. As a result, the US company's share price has fallen by almost 7%. Wolfspeed and STMicroelectronics fell in parallel, by 12% and 6% respectively. These companies are engaged in supplies of silicon carbide, which is used to create electronics, and Tesla said it planned to reduce its dependence on the component.

Source: Reuters