Tesla plans to open a new gigafactory in MexicoMusk said Wednesday, as the electric vehicle giant pushes to expand its global production.
Mexican authorities announced the day before that Tesla would invest more than 5,000 million dollars for the new facility in the northern industrial state of Nuevo León, where it would build around a million vehicles a year.
However, the event, in which Musk revealed the “Master Plan 3” from the electric vehicle maker, lacked details on Tesla’s schedule or new products.
“Markets were ready for a big announcement, maybe something like a new, more affordable model,” he said. Russ MoldChief Investment Officer at AJ Bell.
“Tesla had been on a roll until now in 2023. Then Musk sticks his head over the parapet in an investor day presentation and the stock falls (…) It may have just been a case of not living up to expectations“.
The shares, which lost about two-thirds of their value in 2022 after topping $300 and falling as low as $110, they have risen more than 60% so far this year.
“Schedule and cost details were limitedand the event lacked a Tesla-style surprise,” said Colin LanganWells Fargo analyst.
Tesla events have created a buzz online in the past, with Musk dancing at the opening of the company’s Berlin plant in 2022 and an event in China in 2020 going viral on social media.
The company’s plan to use 75% less silicon carbide in vehicles without compromising the car’s performance or efficiency also weighed on the shares of semiconductor maker and supplier STMicroelectronics.
The reduction plan was “bad news for the entire silicon carbide production chain and, in particular, for STMicro,” said the brokerage equitates. estimated that Tesla accounted for 70% of sales Semiconductor Conference of 2022 at STMicro.
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