Tesla’s stock took a nearly 6% hit the day following its “Investor Day Event”, despite the company announcing groundbreaking technology to reduce costs and increase efficiency in their manufacturing process for their upcoming next-generation vehicle. Despite demonstrating progress with their humanoid robot Optimus, unveiling a new Gigafactory location in Mexico, showcasing progress in their autonomous driving technology, unveiling next-generation battery storage, and leading the EV design, software, and profit margin in comparison to competitors, the stock still plummeted.
So why did the stock fall? Some analysts believe that the presentation lacked substance for the next-generation car, while others believe that there was plenty of substance and that Tesla presented a solid roadmap for future execution for long-term investors.
However, I believe that this was just a classic case of “buy the rumor and sell the news”. Tesla had already seen a sharp increase in its stock price in the weeks leading up to the event, and this drop is a common trend that we have seen with Tesla time and time again, especially after earnings reports.
