Investor Day

Tesla’s Investor Day 2023 Leaves Shareholders Disappointed

Tesla’s third annual Investor Day took place on Wednesday, March 1st. This live event was an opportunity for investors and auto analysts to get an insiders look at Tesla’s upcoming production, long-term expansion goals and capital allocation from top voices in the company. While many auto enthusiasts were gearing up for the debut of a new (and affordable) Tesla to help expand the scope of electric mobility, the actual focus behind this event went in an entirely different direction — towards ending fossil fuels, no less.

Where is Investor Day?

Gathered in Austin, Texas, Elon Musk and a number of Tesla execs took the stage on Wednesday to unveil the latest strategies for the EV automaker. After months of headlines over falling stock, insurance loss, and safety issues, many auto experts were anticipating this day to be informative yet interesting, to say the least. Though Musk spares no opportunity to be vocal on his Twitter feed, this pivotal stage is where the talking matters most. And unfortunately, this year didn’t hit the mark.

Investors wanted a new model

Tesla failed to woo investors with an underwhelming Investor Day on Wednesday. One of the biggest surprises, and honestly disappointments, for the day included the lack of attention given towards an up-and-coming Tesla model. In particular, one that was cost-effective for a wider range of buyers. Instead, the Tesla team gave generalizations concerning future production. This involved restructuring the assembly line process to construct the front and back-end of the vehicles separately. As a result, this would cut down production costs by 50%. Ambitious, for all intents and purposes.

In addition, Tesla outlined the value of its software updates. With the ability to remedy small mechanical and operational issues from a computerized update, such as adjusting air suspension mid-drive, the cost to maintain Tesla models comes from the technology that drives its innovation. However, despite showcases what Tesla has done and plans to do in terms of innovation, it wasn’t enough to rally shareholders in a confident direction. Shortly after the Investor Day took place, stock dropped considerably. More than 5%.

Today is not just for investors of Tesla, but anyone who is an investor in Earth.” – Elon Musk

Elon’s push for sustainable energy

While it became clear there was no $25,000 Tesla making its way onto the auto market in 2023, Musk had much to say about ending fossil fuels and the progression of sustainable production. His announcement of a gigafactory in Mexico came as suspected, and will reportedly be the place of future sustainable builds. As mentioned, it will also be the location where Musk’s latest approach towards manufacturing (constructed the front and back of vehicles independently) will help to reduce costs from the bottom-up.

Ultimately, Musk’s visions for the future are impressive. However, his emphasis on long-term goals at Investor Day 2023 didn’t sit well with the people financially invested in the company.

What Tesla really needs

Sure, Musk’s proactive and innovative approach toward electric production does serve the Earth well. Yet, to get there, he’ll need the support of shareholders and the automotive community. So far, he’s falling short of expectations.

For years, Musk has been an advocate about building the electric consumer base by offering a low-cost EV along with its highly adorned luxury models. In order to execute this strategy, Tesla would need to design a sustainable vehicle that average consumers can afford. Investor Day would have been the opportune time to settle shareholder’s worries about the current state of the company.

Not only do investors want a $25,000 Tesla EV, very badly, so does the general public. For Musk to continue to radicalize the manufacturing industry and keep shareholders interested, he’ll need to live up to the financial reality of things.

To learn more about Investor Day 2023, you can stream the live event here and take the time to tell us your opinion below:

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Michaella Malone
Michaella Malone is a content specialist and full-time freelancer with 5+ years of experience working with small businesses on online platforms. She is a graduate of Florida State University (Go Noles!) and avid traveller, having visited over 25 countries and counting. In addition to blogging, ghostwriting, and social media content, she has contributed to the development of English as a Second Language (ESL) curriculums for international programs.

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    1. Where is my $25K Tesla!

    2. As it’s already shown, this is gonna blow for Tesla. I understand fixing what’s already broken first though…

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