Despite Positive Analyst Sentiment, Tesla Shares Fall 8% After Investor Day

There was a continued slide in Tesla shares on Thursday morning, a movement that began the day before at Tesla's Investor Day event, in which a long-term vision was presented but no detail on any new products or services was provided.

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Despite positive analyst reactions to Tesla's CEO Elon Musk's presentation as well as the company's overall outlook, the stock of the electric-vehicle manufacturer fell nearly 8% in the pre-market. Musk and his executives at Tesla reiterated their 2030 target of producing 20 million vehicles per year at the event, which included a three-hour presentation followed by a question-and-answer session.

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“As we are in the midst of a race to the bottom, we seriously question whether the competition will be able to keep up," Morgan Stanley auto analyst Adam Jonas wrote in a note released on Thursday. It is currently rated overweight by Jonas, and he has set a price target of $220 for the stock.

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Analyst Mark Delaney writes in a Thursday article that “Goldman Sachs reaffirms its positive view of the company's long-term competitive position with a buy rating and a price target of $200, and that the recent event reinforces this view.”

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Delaney, however, warned that this lack of clarity beyond the statement that they are working as fast as they can and it may happen in the next couple of years is likely to be perceived as a disappointment by some.

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A new update to Musk's ambitious 2016 Master Plan Part Deux was presented today in the third installment of his "Master Plan." There have still been some challenges to overcome in order to achieve the objectives of that plan, which included allowing Tesla owners to "make money" on their cars when they otherwise would have sat idle. Shares of Tesla have risen more than 80% year-to-date, but they are still well below the highs that propelled the stock price above $400 in 2021.

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