Tesla Investor Day: Is Tesla Stock a Buy After the Event?
This year’s Investor Day event was lackluster, to say the least.
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2023-03-04 11:30

What Did We Learn from Tesla’s Investor Day?
If we looked strictly at the stock's performance, you would probably assume that Tesla (NASDAQ: TSLA) did not deliver much during its recent Investor Day event. Is that true? Yes and no. Tesla’s Investor Day actually has a pretty long history of disappointing investors. Part of it is because the company is so closely followed and analyzed that nothing is really a surprise anymore.
Tesla Investor Day: Is Tesla Stock a Buy After the Event?
This year’s Investor Day event was lackluster, to say the least. Many were expecting the company to release details about its mass-market entry, a vehicle that is expected to be priced at around $25,000 USD. The company did provide some insight on a new vehicle that it anticipates can sell up to 700 million vehicles, but nothing visual or of any substance was provided. Not surprisingly, this led to the stock tumbling the next day.

Tesla did show us that it has two mystery vehicles on the way, at least one of which looks to be filling the mass-market niche that the company so desperately needs. CEO Elon Musk also provided insight into his Masterplan Part 3 although that also failed to garner any excitement from the Tesla community.

Investor Day Wasn’t All Bad
The company is clearly thinking about how to approach an entry into the lower-priced market. Musk even alluded to the fact that there are already seven other electric vehicles that are cheaper than the Model 3. Personally, I think it is a positive sign even though we didn’t get the details we were looking for on the specifications of the vehicle itself.

Another major announcement from Tesla was the location of its next GigaFactory: Mexico. After last year’s opening of the GigaFactories in Berlin and Austin, Tesla is continuing to expand its manufacturing to other markets. While nothing was announced, Tesla has also been looking into adding production facilities in countries like Canada and Japan.

Tesla also announced that its Generation 3 vehicles will be built on a much more affordable platform. Not only does this mean the components of the vehicle but the actual space it takes to produce these vehicles in its factories. Tesla is also looking to build these cars with motors that do not require rare-earth minerals. These factors should all help to grow Tesla’s margins and Wedbush analyst Dan Ives is even more bullish on the stock. Ives said after the event that Tesla is operating at a higher level than its competitors.

Is Tesla Stock a Buy?
Is Tesla a buy? I understand if you want to wait for official news and timelines regarding its mass-market vehicle. Remember that Tesla isn’t exactly the best company to trust when it comes to timelines. I still think the sell-off in the stock was a knee-jerk reaction. All of the framework for a mass-market vehicle is there aside from an actual announcement. Overall I thought Tesla’s Investor Day was fine, but predictably left much to be desired. I haven’t let that sway from my long-term conviction in the stock though. This could be a buying opportunity because once Tesla actually does announce its low-priced vehicle, the stock will likely surge well beyond its current levels.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

Published On
2023-03-04 11:30

About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.

You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

What the heck do we do with NVIDIA (NVDA) now?
NVIDIA could continue higher well into the $400s and I wouldn’t be surprised at all. 
By Mike Sakuraba | 1 week ago

Amazon's Ascent in the AI Era: An Unstoppable Force?
Amazon is set to transform our everyday experiences with AI-powered services, although it must navigate potential regulatory headwinds on its path to dominating the AI race.
By Staff | 2 weeks ago

Will Disney's Big Risk Pay Off?
The Political Tussle That Could Redefine an Entertainment Giant.
By Staff | 2 weeks ago

Musk Stays on as CEO: What This Means for Tesla (TSLA)
Tesla is still on track to be the long-term growth stock that many anticipated a few years ago.
By Mike Sakuraba | 2 weeks ago

Inflation Unraveled, a New Economic Normal
As the economy adjusts to a new normal with higher inflation rates and businesses leveraging their power to raise prices without consumer resistance, both consumers and policy makers must adapt their strategies to navigate the shifting landscape.
By Staff | 2 weeks ago

Is NVIDIA (NVDA) a Buy Ahead of its Earnings?
So with its earnings report on deck, what should we do with NVIDIA’s stock? 
By Mike Sakuraba | 2 weeks ago

PayPal's Roller Coaster Ride
Despite recent downturns, PayPal, equipped with its robust resources, strong brand recognition, and technological adaptability, holds potential for future growth through cryptocurrency, buy-now-pay-later services, business lending, strategic partnerships and acquisitions, especially within developing international markets.
By Staff | 3 weeks ago

2 Stocks To Buy After Earnings Sell Offs
When these stocks sell-off, they can provide one of the best buying opportunities of the year.
By Mike Sakuraba | 3 weeks ago