Musk's Model Y Debut Leads to Tesla’s Worst Post-Party Rout
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% |
To contact the reporter on this story: Craig Trudell in New York at ctrudell1@bloomberg.net
To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Melinda Grenier
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