Tesla stock steered sharply lower Thursday as analysts pointed to a lack of detail regarding short-term challenges, and no "Tesla-like surprise" coming out of the EV giant's investor day on Wednesday.
Headlines heading into the Tesla investor day stirred some expectations for major announcements. Despite speculation of a new EV being unveiled, Tesla executives said Wednesday a next-generation platform or vehicle will come at a "later date."
CEO Elon Musk presented an ambitious "Master Plan 3" focused on making a huge push for clean energy.
Executives also stressed cost reduction efforts. The company's goal is to cut assembly costs by 50% in its next-generation vehicle platform. Tesla also plans to reduce its factory footprint by 40%.
Wells Fargo analyst Colin Langan wrote Thursday however the timeline and cost details were limited. Langan added that with high expectations ahead of the event, the affair lacked a "Tesla-like surprise." The Wells Fargo analyst wrote he expects Tesla stock to trade down, but he maintained an "Equal Weight" rating and a Tesla stock price target of 190 — about 6% below where shares closed on Wednesday.
CFRA analyst Garrett Nelson told investors Thursday he is also maintaining a "Buy" rating and a Tesla stock price target of 250.
The Logic Of A 'Non-Unveil' Event
TSLA shares were poised to follow "past trends in the aftermath of its investor day, namely a big run-up leading up to the event followed by a sell-the-news reaction," Nelson wrote.
"The company's presentation largely focused on its long-term vision, but we think investors were looking for answers to questions more near-term in focus," he added.
Meanwhile, Morgan Stanley analyst Adam Jonas was more bullish on Tesla Thursday. Jonas wrote Thursday the "non-unveil" of a new cheaper Tesla model shouldn't have disappointed people.
"Imagine you just placed an order for a $50k Model Y and Tesla tells you there will be a slightly smaller version for half the price with enhanced capabilities available soon," Jonas wrote. "From a commercial standpoint, maybe not the best strategy."
The analyst added he leaves the event asking himself "which legacy automakers could compete with TSLA in terms of EV profitability?"
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Tesla Stock
TSLA shares sank 6% to 190.70 Thursday. On Wednesday, Tesla stock closed 1.4% lower at 202.77 amid lower-than-average traffic. Shares opened sharply below their 21-day moving average on Thursday, pointing the stock toward a second straight weekly drop following a steep six-week climb.
Ahead of the Tesla event, TSLA shares had doubled from bear-market lows 0f 101.81 on Jan. 6. Much of that run-up reflected Tesla investor day buzz. This followed a historical pattern of TSLA shares rallying ahead of similar events. In 2016, Tesla stock went on a monthlong 22% run ahead of Musk's second "Master Plan" announcement on July 20, 2016.
TSLA stock rank fourth in IBD's Auto Manufacturers industry group. Tesla stock has a 73 Composite Rating out of 99. The stock also has a 27 Relative Strength Rating. The EPS Rating is 99.
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