Tesla Investor Day to Unveil “Master Plan 3”: What Will It Mean for the Stock Market?

Tesla will hold its much-anticipated Investor Day on Wednesday, March 1.[0] Following CEO Elon Musk’s announcement that he will be presenting his “Master Plan 3” at the event, there is a great deal of anticipation surrounding the event.[1] While there are few details known, rumors have already emerged that Musk will unveil the company’s “generation 3” platform, which is supposed to decrease the cost of manufacturing and allow for a much cheaper mass-market Tesla.[0] Other expectations include more clarity surrounding Tesla’s capital structure and the possibility of an announced stock buyback policy.[0]

The U.S. stock market ended the week slightly lower.[2] The Dow rose 0.39% on Friday, but dipped 0.13% for the week, the first time it’s lost ground for three consecutive weeks since September.[3] The S&P 500 slid 0.28%, giving it a two-week losing streak, while the Nasdaq Composite fell 0.58%, but it rose 0.59% on the week, its sixth positive week in seven.[3]

The Federal Reserve tightening forecasts are inching up with the market now pricing in 30bp for March, including a 20% possibility the Fed hiked by 50 basis points.[4] The market still anticipates that the Federal Reserve will raise their interest rate by a quarter of a percent in May and the likelihood of another rate increase of the same magnitude in June is presently at 72%.[5]

With much anticipation surrounding Tesla’s investor day, a big announcement could spur enough bullish energy to push up the entire S&P 500.[0] Analysts believe that Musk’s “Master Plan 3” will be about a “path to a fully sustainable energy future for Earth,” and that the event may possibly confirm plans for a long-awaited Model 3 refresh.[1] Investors will have to wait and see what the event brings, and what implications it may have for the stock market.

0. “S&P 500 Forecast: SPX clings to bottom trendline support” FXStreet, 28 Feb. 2023, https://www.fxstreet.com/news/sp-500-forecast-spx-clings-to-bottom-trendline-support-202302281435

1. “Dow Jones Futures: Warren Buffett Stock Falls On Earnings Miss; Tesla Investor Day On Deck” Investor’s Business Daily, 28 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-warren-buffett-stock-occidental-falls-on-earnings-tesla-investor-day-on-deck

2. “Dow Jones, Nasdaq, S&P 500 weekly preview: Stocks are overvalued – analysts By Investing.com” Investing.com, 21 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-jones-nasdaq-sp-500-weekly-preview-stocks-are-overvalued–analysts-3009072

3. “CNBC Daily Open: Growth stocks look hot but investors should be cautious” CNBC, 20 Feb. 2023, https://www.cnbc.com/2023/02/20/stock-markets-growth-stocks-look-hot-but-investors-should-be-cautious.html

4. “Dow Jones, Nasdaq, S&P 500 weekly preview: Fed tightening forecasts are inching up By Investing.com” Investing.com, 27 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-jones-nasdaq-sp-500-weekly-preview-fed-tightening-forecasts-are-inching-up-3015573

5. “Stocks Edge Higher, Nvidia, Moderna, eBay, Wells Fargo In Focus – Five Things To Know” jacksonprogress-argus, 23 Feb. 2023, https://www.jacksonprogress-argus.com/arena/stocks-edge-higher-nvidia-moderna-ebay-wells-fargo-in-focus—five-things-to/article_2193282a-3820-5763-9a15-98740fb980f6.html