California Gazette

Musk’s Vague “Master Plan 3” and the Failing Stocks of Tesla

Tesla Inc. made some vague references to “next generation” technology during the eagerly awaited event, but they did not give many details. As a direct result of this, during the lengthy trading period on Wednesday, Tesla Inc.’s stock price dropped by more than 5%.

Elon Musk avoided a query that requested more details following a four-hour demonstration he gave to investors. The details regarding performance, aesthetics, and timeline for the prototypes are all floating in the air, as well as whether Tesla would start producing the new cars at an existing plant. The issue of whether the test vehicles would have a manual transmission was also up for discussion. It was previously announced that the production would be moved to a Mexican factory.

Tesla Stocks and the Future of Next-Gen Electric Vehicles

Musk told the audience of mostly Wall Street analysts, “We will have a proper product event, but it would be premature to answer your questions at this time,” before opening the floor to additional inquiries.

TSLA showed a whopping -5.85% drop following the closing bell after declining 1.4% during the normal trading day.

Tesla executives have said that in order to improve assembly, produce electric cars more quickly and cheaply, reduce the size of the powertrain, and reduce the overall weight of the vehicle, the company needs to rethink its production method.

The price of Tesla’s shares, which dropped to a low of $109.10 per share in December, recently climbed back above $200, coinciding with the release of the most recent iteration of the blueprint. 

Despite falling by 30% over the previous twelve months, the price has grown by 64% so far this quarter. This stands in stark contrast to the stock market benchmark, which saw an increase of about 3% during the most recent quarter, and to the S&P 500 index SPX, which saw a drop of about 8% over the past year.

Musk also assured investors that this would not have an effect on the market for Tesla’s electric cars.

Going Back to the Roots of Tesla

The presentation focused primarily on Tesla’s technological prowess as well as the worldwide initiatives for electrification and sustainability.

Musk said that he aimed to offer “hope and optimism grounded in actual physics and calculations.” Moreover, he further claimed that if energy storage, electric cars, and other forms of electrification are combined, “there is a clear path to sustainable energy” that does not necessitate the obliteration of natural habitats or extreme austerity.

Tesla in Mexico, and Beyond

A gigafactory in Mexico is currently in the works, according to Musk. At the same time, the newest versions of a variety of Tesla cars were about to enter manufacturing.

In an email, Edmunds’ Jessica Caldwell commended Musk for having a “clear path” toward a world powered by sustainable and ecologically friendly energy sources. In order to get the most out of your investment, you should consider investing in a company that has a proven track record in the field. 

Given the current economic situation, the company’s focus on cost-cutting was predictable yet encouraging; however, Musk and company neglected to offer a conceptual perspective of a less expensive Tesla.

Musk mentioned that he was “working” on a new grand plan in a tweet that was sent out almost a year ago. His predictions for self-driving cars and car sharing have not materialized since the release of “Master Plan 2” in March 2016. The initial “master plan,” which was created in 2006, described Tesla’s strategy to start with an expensive and highly coveted sports car as a launching point and a source of funding for later affordable EVs.

Conclusion

Beyond vague tweets and out-of-this-world ideas, Elon Musk has proven to reach new heights. In this fast-paced world, moving toward the path of sustainability is the prime idea we must hold onto, stocks and all.

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