Why Tesla's Recent Event Failed to Deliver
Tesla's recent event failed to meet investors' expectations due to the lack of a Next Generation EV announcement.
Staff or Guest writer for The Dog of Wall Street.
2023-03-05 11:30

Investors were left feeling disappointed after Tesla's ($235.58|-1.36%) recent event, which failed to live up to the hype. Despite high expectations, the presentation lacked the concrete details that many were hoping for, including the highly anticipated Next Generation EV announcement, which was noticeably absent.Why Tesla's Recent Event Failed to Deliver
While there were a few intriguing hints and nods to Tesla's goal of transitioning to sustainable energy economies, many were left wondering about the specifics. On the other hand, the event did have a significant impact on suppliers, particularly in the rare earth metals and semiconductor industries. Tesla's announcement that they would no longer use rare earth metals and would require fewer chips caused ripples throughout these industries.

Tesla also made some announcements about moving away from silicon carbide and using their in-house technology instead. This caused a drop in the share prices of silicon carbide makers. Additionally, rare earth metals miners were also affected because Tesla's next-generation Drive Unit will use magnet-based technology and won't require rare earth metals.

Initially, the event was expected to focus on supply chain issues, and there were reports that Tesla was in talks with different miners. However, Elon Musk's message was somewhat different, and he emphasized refining as the main challenge rather than mining. Tesla plans to build a lithium refinery in Corpus Christi to address this issue.

The event also highlighted a shift in leadership at Tesla, with the entire team now involved rather than just Elon Musk. This change in leadership could be one reason why the event lacked the big revelations that many were expecting. Some investors are concerned that there are now fewer leaders, creators, and strategists, and more engineers and techies.

Overall, investors were disappointed with the event, but some of the announcements could have significant impacts on the rare earth metals and semiconductor industries. It remains to be seen how these changes will play out in the future.

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

8 months ago
Investors, not just fans, loved the event and left excited and fired up. “Mainstream media didn’t give a warm response as there was more than 120 seconds of information to unpack.
Published On
2023-03-05 11:30

About the Author
Staff or Guest writer for The Dog of Wall Street.

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