What Happened To Tesla’s Stock Price Since The Last AI Day?

Key Takeaways

  • Right before Tesla’s AI Day started, the stock price was at $265.25. The Tesla stock price has plummeted since, it’s currently priced at $223.07.
  • Many pointed out that the Optimus prototype was underwhelming, and Musk may have to change how high he sets his expectations in the future.
  • The Tesla stock has been tumbling ever since AI Day with other issues like weaker-than-expected delivery results and the news of Elon Musk announcing he was purchasing Twitter — again.

Let’s look at what has happened to Tesla’s stock price recently and explore factors that have played a major roll in the stock’s downward movement. We do recognize the market is not always rational, overreact to the news cycle as it attempts to forecast the future months ahead of time.

What happened at Tesla AI Day?

Tesla’s AI Day was very technical as the event serves more as a platform for recruiting the brightest minds in 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 speculated that they would be able to mass produce it and sell it for less than $20,000 in three years. AI experts were not impressed by the limited capabilities of the robot, and they felt that Musk had overpromised.

The entire live stream of the event is up on YouTube, and it’s over three hours long. The video currently has 1.6 million views. We have already looked at what Tesla AI Day could mean for investors. Now we’re going to look at what has actually happened to the stock since. You can read our full recap from Tesla’s AI Day here, if you’re interested in more.

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What Happened to Tesla’s Stock After AI Day?

Tesla’s AI Day was live on September 30 after trading hours. Tesla stock closed on September 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 on October 7 at $233.93 and closed at $223.07, which was a 4.64% drop for the day.

Investors took the weekend to digest what happened at Tesla AI Day, and many weren’t impressed by the humanoid robot prototype that came on stage at the beginning of the presentation. The presentation was underwhelming because the two robots couldn’t do anything significant. The robot has been ridiculed, but Musk has defended it by saying that people don’t understand its value.

Many feel that Elon needs to improve at managing expectations. The company doesn’t appear to be as close to fully self-driving cars as expected. The robot taxi service that’s supposed to be “a mix of Airbnb and Uber” is nowhere near market-ready either.

We should also note that the third quarter forecasts weren’t as great as expected by analysts. Tesla reported record high third-quarter vehicle deliveries on Sunday, October 2. However, investors were disappointed with the 343,830 electric vehicles delivered because analysts had expected deliveries in the range of 350,00 to 370,000. It’s worth noting that the record delivery figure was a 43% year-over-year increase and that Tesla produced 365,923 EVs, but due to delivery issues, the actual number was below analyst estimates.

The company had to deal with a long shutdown of the Shanghai plant due COVID-19 lockdowns. The Berlin and Austin factories have been ramping up production. However, there are still concerns about the demand for Tesla’s EVs with soaring inflation and the threat of a possible global recession. There are certainly more economical EVs on the market.

However, AI Day was on Friday and the delivery results came out on Sunday, so it’s difficult to fully determine which factor played a greater role in the stock dropping on Monday. This was also all at the beginning of the week for Tesla; things took a turn for the worse from there.

Then Elon Musk shared a plan on Twitter about how he would handle the war in Ukraine, and many were skeptical of his solution. Then to top everything off, Elon Musk announced again that he was indeed purchasing Twitter after all.

Why is Tesla stock down?

We can’t ignore the role that Tesla’s CEO Elon Musk plays in the price of his company’s shares. The controversial CEO seems to always be in the media for some antics, from introducing a surprising plan to end the war in Ukraine to announcing that he’s again buying Twitter. Musk went from showcasing the humanoid robot on Friday evening at Tesla’s AI Day to sparking talks about purchasing Twitter just a few days later, and all of these moves have hurt the Tesla stock price.

The $44 billion bid to purchase Twitter concerns many investors as this is a hefty price tag for a social media platform, particularly a deal that seems perplexing at best. Musk hinted that purchasing Twitter had something to do with his “everything app” that’s simply referred to as “X” for now. There isn’t much more current information about the new app, but it seems like something’s brewing. Or it’s just hype, of course.

The issue with these announcements is that investors are unsure how this would dilute Musk’s focus on Tesla. Investors are worried that he could become more hands-on in the management of Twitter if the purchase goes through, not to mention “X.”

Elon’s intellect and potential might be limitless, but his bandwidth is not. All of it sends mixed signals to a marketplace that does not react well to uncertainty in volatile times. Watching a robot clumsily carried on and off the stage doesn’t help.

What’s Next For Tesla Stock?

There’s always something happening with Tesla stock. After announcing that Tesla would have the first semi truck ready for Pepsi by December, there were no additional financial details revealed, as neither Tesla nor Pepsi have commented on the details.

We will be paying attention to see what happens with Elon Musk’s purchase of Twitter because if he starts to sell his TSLA shares to fund this purchase, it will lead to many more questions than answers.

The recent dip in Tesla stock is concerning because some people fear that the share price could continue to tumble. The next earnings report is scheduled for October 19, 2022, which will break down how the company performed in the third quarter. For now, we have to stay tuned as the show continues with Tesla and Elon Musk.

How Should You Be Investing?

As you can see from the recent price swings with Tesla stock, this could be a risky investment since there are so many factors at play when you invest your money into this company. While there’s increased attention on the electric vehicle market due to the Inflation Reduction Act, investors still have many worries about the company and the overall economy, Tesla being a premium brand. While EV deliveries have increased, there are growing concerns about what the demand will look like for the product if the economy does fall into a recession.

Another way to make money from 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 is a lot of excitement around the Tech Rally Kit at present.

Bottom Line

The public seems to be torn on investing in Tesla. Some think that this company is undervalued, while others will swear it’s overvalued. We all know that Tesla has to figure out how to stop the stock from tumbling even further during this volatile time in the market because more rate hikes could bring the entire market down further. The annual Tesla AI Day left investors and experts with more questions that need to be addressed shortly.

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