Tesla (TSLA) Stock Falls On Disappointing Investor Day

On Thursday, Tesla (TSLA) stocks experienced a decline after its investor day event, which failed to provide specifics about new products. However, CEO Elon Musk revealed his ambitious “Master Plan 3,” which calls for a complete transition to EVs and $10 trillion in spending to create a “sustainable energy future.” The event, held at Tesla’s Austin, Texas factory, focused on Musk’s plans for the future of energy, including cost reduction measures. Tesla also confirmed its plans to construct a manufacturing plant in Monterrey, Mexico.

Furthermore, Tesla announced a “Tesla Electric” program in Texas that would offer a retail $30 per month electricity plan for Tesla vehicle owners to have unlimited overnight home charging. Although Tesla confirmed the arrival of the Cybertruck in 2023, it did not reveal a next-generation vehicle, stating that it would come at a “later date.”

During the event, CFO Zachary Kirkhorn stated that Tesla’s goal was to reduce 50% of costs as they look forward to the next-generation vehicle. The CFO added that Tesla is working on “Robo Taxi” variants of its next-generation platform, which would offer a lower cost per mile than the highest selling products in the world.

Musk’s “Master Plan 3” calls for a sustainable future that includes $10 trillion in capital expenditures to cover mining and refining raw materials, storage, and vehicle batteries. Musk’s plan also aims for a power grid that is entirely renewable, a complete transition to EVs and heat pumps in all homes and businesses, and the electrification of industrial high-temperature operations, shipping fleets, and airplanes.

Although Tesla stocks had doubled since its bear-market lows in January, much of the surge reflected Tesla investor day buzz. Tesla shares fell 5.9% to 190.87 on Thursday, with a possible resistance at its 200-day moving average, which is currently just above 221.