STORY: After a Tesla investor event that ran over three hours at the company's Texas HQ was short on new details, company shares tumbled more than 5% in after-hours trading on Wednesday.
CEO Elon Musk had been expected to launch a much-awaited small, affordable electric vehicle, that would broaden his brand's appeal and fend off competition.
Instead, he focused on a new Tesla gigafactory being built in northern Mexico, its first outside of the United Staes, Germany and China.
"...this is not to be clear moving output from anywhere to anywhere. This is simply about expanding total global output so yeah it’s going to be good.”
Musk was joined on stage by an array of engineers, a nod to Tesla's attempts to show the depth of its executive bench beyond Musk.
Senior executives DID outline their commitment to cutting production costs, with Chief Engineer Lars Moravy saying the company expects to build its next-generation vehicles for half the cost of the current Model 3 or Model Y.
“Elon alluded to the fact that Mexico will build our next gen vehicle, but we will also be doing that in our other plants, so it’s really about getting them all up and running. We expect that to be a huge volume product so we’ll be moving that quickly over the next couple years.”
Tesla is the world's most valuable automaker, but its shares have seen wild swings.
Under pressure from rivals and a weak economy,
Tesla has in recent months cut its prices to boost sales and Musk said Wednesday lower prices are key to driving sales.
Capturing the mass market is critical to Tesla's goal of being able to make 20 million vehicles a year by 2030.
Tesla's CFO Zach Kirkhorn said the company must invest six times what it has already to hit that target a bill that he said could add up to $175 billion dollars.