Investors underwhelmed by Tesla's Model Y reveal
Investors have never responded as negatively to a debut of a new Tesla product as they did after last week's Model Y event. Shares fell 5% on Friday — the worst ever post-event performance for Tesla, Bloomberg reports.
What they're saying: Deutsche Bank analyst Emmanuel Rosner called the event "somewhat underwhelming with no major surprises."
- Jeffrey Osborne, an analyst at Cowen, said the Model Y wouldn't ignite "elevated demand or enthusiasm for the Tesla brand."
Between the lines: Tons of questions remain about the Model Y — none of which were acknowledged at the event.
- As Axios' Joann Muller points out, Tesla said "nothing about where it will build the Model Y or how it will afford the capital investment the new model will require."
There are also concerns the problems that plagued previous Tesla vehicles will hit the Model Y.
- The [manufacturing] is "similar to the original timeline for the Model 3 ramp, which was ultimately delayed by 9-12 months," Bernstein analyst Toni Sacconaghi wrote in a note.
Go deeper: Tesla Model Y makes a splashy debut