What happened
Tesla (TSLA 0.19%) held its 2023 Investor Day event last night, but many who followed along were underwhelmed. With expectations for market-moving news dashed, the stock is plunging Thursday after a strong start to the year. As of 1:30 p.m. ET, Tesla shares were down by 6.4%.
So what
That's not to say there wasn't any important news shared last night. Investors just wanted more details on upcoming new products. But the company still plans to grow sales and lower costs in both its electric vehicle (EV) and energy products. Several items of note from the presentation were:
- Tesla's fifth manufacturing plant will be built in northern Mexico.
- That facility will produce Tesla's "next-gen vehicle."
- CEO Elon Musk shared the stage with several executives it seems he wants investors to be more aware of.
- The goal to produce 20 million electric cars annually hasn't changed.
- Charging subscriptions and lithium refining are coming.
Image source: Tesla.
Now what
Tesla's growth plans are going to take plenty more capital investments. CFO Zach Kirkhorn told the audience that the company could invest at least another $150 billion to achieve its long-term goals. That spending will include new manufacturing plants as well as additions to existing ones. The company recently announced an expansion to its Nevada battery plant, for example. Tesla will also invest to vertically integrate further, as evidenced by its plans for lithium refining capabilities.
Investors wanted more details, however. There was hope the company would provide more information regarding the launch of a lower-priced model. Musk did talk about lowering costs and offering a more affordable product. "The desire for people to own a Tesla is extremely high," he said. "The limiting factor is their ability to pay for a Tesla."
Investors already knew the Cybertruck would be coming this year. The lack of details around any other new model seems to be the biggest disappointment today. But long-term investors shouldn't be selling for that reason. Musk and company don't need to telegraph every move to a growing list of competitors. But the sharp rise in shares this year did get some investors to take profits today, it seems. That could be an opportunity for those who trust Musk's vision and want to see the company grow over the long term.
