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Key points to remember
- Just before Tesla AI Day started, the stock price was $265.25. Tesla’s stock price has since fallen, it is currently priced at $223.07.
- Many pointed out that the Optimus prototype was disappointing, and Musk may have to change the height of his expectations in the future.
- Tesla stock has fallen since AI Day with other issues such as weaker-than-expected delivery results and news of Elon Musk announcing he was buying Twitter – again.
Tesla AI Day was a highly anticipated event for investors and AI experts. Many high profile projects are underway at Tesla – the robot, the robot taxi service, other fully self-driving cars, all of the elements that make these projects work. It’s fair to say that investors were disappointed with the event and other news that has come out since. As Musk mentioned, the event was more of a recruiting activity than anything else. The Optimus robot was not ready despite the founder’s claims that it would change civilization.
We’ll look at what happened to Tesla’s stock price after the last AI Day and everything that’s happened with Tesla since.
What happened at Tesla AI Day?
Tesla’s AI Day was highly technical as the event serves more as a platform to recruit the brightest minds into the AI space than a display for investors. Many experts were hoping for a clear update on when fully self-driving cars and a working robot would be ready to launch.
The Optimus was clearly not yet a working robot, even though Musk had speculated that they would be able to mass-produce it and sell it for less than $20,000 within three years. AI experts weren’t impressed with the robot’s limited capabilities, and they felt Musk had promised too much.
The entire live stream of the event is streamed on YouTube and is over three hours long. The video currently has 1.6 million views. We’ve already looked at what Tesla AI Day could mean for investors. We will now examine what has actually happened to the stock since. You can read our full recap of Tesla’s AI day here, if you’re interested in more.
What Happened to Tesla Stock After AI Day?
Tesla AI Day was live Sept. 30 after-hours trading. Tesla stock closed Sept. 30 at $265.25. After the weekend, Tesla stock opened on Monday, October 3 at $254.50, then closed at $242.40.
Tesla stock opened Oct. 7 at $233.93 and closed at $223.07, down 4.64% for the day.
Investors took the weekend to digest what happened at Tesla AI Day, and many were unimpressed with the humanoid robot prototype that took to the stage at the start of the presentation. The presentation was disappointing as the two robots couldn’t do anything meaningful. The robot was ridiculed, but Musk defended it, saying people don’t understand its value.
Many believe that Elon needs to improve his expectation management. The company doesn’t seem to be as close to fully self-driving cars as expected. The robot taxi service which is supposed to be “a mix of Airbnb and Uber” is far from ready for the market either.
Note also that the third quarter forecasts were not as good as expected by analysts. Tesla announced record third-quarter vehicle deliveries on Sunday, October 2. However, investors were disappointed with the 343,830 electric vehicles delivered as analysts had expected deliveries of between 350,000 and 370,000. It should be noted that the record delivery figure was a 43% increase from a year-over-year and that Tesla produced 365,923 electric vehicles, but due to delivery issues, the actual number was lower than analysts’ estimates.
The company faced a lengthy shutdown of the Shanghai factory due to COVID-19 related lockdowns. The factories in Berlin and Austin have increased their production. However, there are still concerns about demand for Tesla’s electric vehicles with runaway inflation and the threat of a possible global recession. There are certainly more economical EVs on the market.
However, AI day was Friday and delivery results came out on Sunday, so it’s hard to fully determine which factor played the biggest role in Monday’s stock drop. It was also very early in the week for Tesla; things got worse from there.
Then Elon Musk shared a plan on Twitter for how he would handle the war in Ukraine, and many were skeptical of his solution. Then to top it off, Elon Musk again announced that he was indeed buying Twitter after all.
What’s happening now with Tesla stock?
We can’t ignore the role that Tesla CEO Elon Musk plays in his company’s stock price. The controversial CEO always seems to be in the media for a few antics, introducing a surprising plan to end the war in Ukraine only to announce he’s buying Twitter again. Musk went from showing off the humanoid robot Friday night at Tesla’s AI Day to discussing the Twitter buy a few days later, and all of those moves hurt Tesla stock price.
The $44 billion bid to buy Twitter has many investors worried because it’s a high price for a social media platform, especially a deal that seems confusing at best. Musk hinted that Twitter’s purchase had something to do with its “everything app” which is simply called “X” for now. There isn’t much newer information about the new app, but it looks like something is afoot. Or it’s just hype, of course.
The problem with these announcements is that investors don’t know how it would dilute Musk’s focus on Tesla. Investors fear he may become more active in running Twitter if the purchase goes through. Musk already has enough on his plate, and this purchase on a social media platform might be too much for one person to handle.
What’s next for Tesla stock?
There’s always something going on with Tesla stock. After a busy week for the company and its CEO, Elon Musk announced that Tesla will have the first tractor-trailer ready for Pepsi by December. No additional financial details have been revealed, as neither Tesla nor Pepsi have commented on the details yet.
We’ll be watching what happens with Elon Musk’s purchase of Twitter because if he starts selling his TSLA shares to fund this purchase, it will lead to many more questions than answers.
The recent drop in Tesla stock is concerning as some people worry that the stock price will continue to fall. The next earnings report is scheduled for October 19, 2022, which will break down the company’s performance in the third quarter. For now, we have to stay tuned as the show goes on with Tesla and Elon Musk.
How should you invest?
As you can see from the recent price swings with Tesla shares, this could be a risky investment because there are so many factors at play when investing your money in this company. Although there is increased attention in the electric vehicle market due to the Cut Inflation Act, investors still have many concerns about the company and the overall economy, with Tesla being a top brand. of range. As EV shipments have surged, there are growing concerns about what demand for the product will look like if the economy falls into a recession.
Another way to make money with Tesla and innovations in the world of AI is to invest in one of Q.ai’s investment kits. AI-powered investment kits take the guesswork out of investing. Our artificial intelligence searches the markets for the best investments for all risk tolerances and economic situations. There’s a lot of excitement around the Tech Rally Kit right now.
Conclusion
The public seems torn about the investment in Tesla. Some think this company is undervalued, while others will swear it is overvalued. We all know that Tesla needs to find a way to keep the stock from falling even further during this period of market volatility, as further rate hikes could drive the broader market down further. The annual Tesla AI Day has left investors and pundits with other questions that need to be addressed shortly.
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