Status: 03/02/2023 09:35 a.m
Elon Musk caused disappointment at Tesla Investor Day. The presentation of new, affordable models from the US electric car manufacturer that investors had hoped for did not materialize.
Tesla CEO Elon Musk remains vague on his plans for a new generation of low-cost electric cars from the US manufacturer. At Tesla’s investor day, Musk held back with details about possible new models. The vehicles would only be shown at a real product show, the tech entrepreneur said yesterday at the group’s headquarters in Austin, Texas.
This caused disappointment among investors; the expectations of the Investors’ Day were high. Observers had hoped for the presentation of new car models.
No new financial targets
The lack of detail on new low-cost vehicles didn’t sit well with investors. Analysts also complained that Tesla has not presented any new financial targets for the current fiscal year.
Investors then sent Tesla shares plummeting in after-hours US trading. The paper, which had increased significantly in the run-up to the high expectations, lost five percent and also pulled US futures down with it.
Musk wants to halve costs
Instead of new car models, Musk presented a plan in Austin on how the costs for the new generation of vehicles should be halved. This should be made possible primarily through new manufacturing methods and smaller factories, said the CEO and his managers.
This could reduce the cost of a new generation of cars to around $25,000. The well-known Tesla investor Ross Gerber then tweeted: “That would enable an electric car in the price range of 25,000 to 30,000 dollars.”
Ambitious long-term goal
Breaking into the mass market is critical for Tesla to achieve its long-term goals. Tesla CFO Zach Kirkhorn said the company would need to invest six times more than it currently does to reach its long-term goal of producing 20 million cars a year by 2030.
In fact, this goal may be difficult to achieve. 20 million vehicles would be more than the two largest car companies Volkswagen and Toyota currently produce together.
Tesla currently has a production capacity of almost two million vehicles per year. In its best year, VW produced almost eleven million vehicles – manufactured in more than 100 factories.
Elon Musk’s e-car manufacturer is the most valuable car company in the world, but the share price has fluctuated greatly recently. Tesla shares are currently trading more than 50 percent below their November 2021 high, but have recovered strongly since the beginning of the year.