Musk's Model Y Debut Leads to Tesla’s Worst Post-Party Rout
(Bloomberg) -- Tesla Inc. shares plunged 5 percent Friday, the worst rout for the stock following one of Chief Executive Officer Elon Musk’s parties to hype a new product or service.
The unveiling of the Model Y electric crossover was a more subdued affair than some of Musk’s past performances, and Tesla’s customer-deposit strategy rekindled concerns about the company’s cash position.
Tesla immediately began charging $2,500 to order a Model Y, which won’t be available for at least a year and a half. When Musk last debuted a vehicle for the mass market -- the Model 3 sedan -- Tesla took $1,000 reservations from consumers.
Here’s how Tesla’s share reaction Friday compares with past moves a day after Musk, 47, has put on a show for customers:
|Model Y unveiling (March 2019)||-5.0%|
|Semi, Roadster event (November 2017)||+0.8%|
|Model 3 handover (July 2017)||-3.5%|
|Solar Roof debut (October 2016)||-1.1%|
|Tesla Model 3 reveal (March 2016)||+3.4%|
|Storage batteries debut (April 2015)||Little change|
|Model S battery swap (June 2013)||-1.1%|
|Model X unveiling (February 2012)||-4.5%|
©2019 Bloomberg L.P.