Have investors lost faith in Elon Musk? Tesla had been on a tear so far in 2023, the share price nearly doubling.
Then Musk raises his head above the parapet in an investor day presentation and the shares are sputtering again in after-hours trading. It may just have been a case of failing to live up to the hype.
AJ Bell’s Russ Mould said: “The markets were primed for a big announcement, perhaps on something like a more affordable new model. However, details were thin on the ground and Musk’s big reveal, a plan to build a new facility in Mexico, had been trailed by an eager Mexican government earlier this week.
“It would be wrong to dismiss the significance of what was announced in Austin entirely. The company did outline how it might become more efficient and reduce costs, which would be key to delivering a new ‘large-volume’ vehicle.
“If Tesla can truly deliver the Model T Ford of the electric age the rewards could be massive and that explains why there is still so much excitement around the shares. However, is Musk the right person to get them there?”