Wall Street reacts to Tesla's Battery Day: 'disappointed elevated expectations,' 'one more thing ain't enough'

Elon Musk, co-founder and chief executive officer of Tesla Motors.
Yuriko Nakao | Bloomberg | Getty Images

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Tesla CEO Elon Musk announced a number of production and manufacturing developments that could lead to better and cheaper cars at the company's "Battery Day" on Tuesday, but many on the Street were left disappointed by the multi-year timeline for the improvements to be realized, as well as the lack of concrete goals.

Or as Bernstein's Toni Sacconaghi summed up: "long on vision ... short on near-term deliverables."

In a multi-hour presentation in front of a parking lot full of Tesla shareholders in their vehicles, Musk outlined how the company will reduce battery costs by more than 50% through vertically integrating manufacturing. Alongside Drew Baglino, SVP for powertrain and energy engineering at Tesla, Musk walked through improvements in five key areas: cell design, cell manufacturing, anode material, cathode material and cell-vehicle integration. He announced a new $25,000 vehicle, and said the company hopes to produce three terawatt hours of batteries by 2030. Long-term, he sees Tesla making 20 million cars per year.

"Like other Tesla investor days, Battery Day was not without its share of lofty goals and grandiose projections, although these were of a decidedly longer-dated nature than at past events," noted JPMorgan.

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