Tesla shares fell after Elon Musk’s statement

Tesla shares fell after Elon Musk’s statement

September 24, 2020 0 By autotimesnews

Tesla’s share price has dropped more than 5% after the plans that Elon Musk unveiled on Battery Day. The company mainly relies on incremental improvements over the medium term. There was no really big breakthrough.

The event was highly publicized, and Tesla was expected to come up with groundbreaking concepts at Battery Day that would take electric driving to a much higher level. Musk tried to temper expectations a bit via Twitter, and in the end, Tesla did not introduce revolutionary new technologies, but rather evolutionary improvements.

Tesla used Battery Day to unveil the 1100bhp Model S Plaid. This new top model should offer amazing performance at a relatively bargain price. In addition, Musk announced plans to produce a cheaper electric vehicle.

More interesting is the news about how the company plans to manufacture and introduce batteries in the future, abandoning the use of dubious and expensive cobalt. Thanks to the new cell architecture in the battery, a 16% increase in power reserve is promised, while the price per kWh will decrease by 56%. In addition, the battery should become an integral part of the car, which, according to Tesla, means that there is no need to further reinforce the chassis, which will create more room for an additional battery.

In addition to battery technology and vehicle adoption, Tesla plans to gain more control over battery production. The manufacturing process needs to be optimized, which Tesla believes should lead to a 69% reduction in manufacturing costs. This will reduce the investment required to launch production on a larger scale, and ultimately will help improve the company’s financial picture and reduce the cost of the final product.

However, the shareholders could not hide their disappointment due to the lack of more specific statements: the result – the price of Tesla shares fell by more than 5%. Apparently, more sensations were expected on “Battery Day”. In addition, Musk did not link a specific timeline with the stated goals: he only said that it would take about three years to fully implement the disclosed plans. Investors did not like this uncertainty.