Tesla shares fall as Musk dampens ‘battery day’ expectations


Elon Musk, CEO of Tesla, stands on the construction site of the Tesla Gigafactory in Grünheide near Berlin, September 3, 2020.

Patrick Pleul | picture alliance | Getty Images

Tesla shares sank 4% in premarket trading Tuesday, after CEO Elon Musk sought to manage expectations ahead of the electric carmaker’s “battery day” presentation.

Musk’s firm is expected to announce on Tuesday details about a new type of battery cell it has developed. Analysts had hoped the technology could help Tesla maintain its edge over rivals in the electric vehicle space, but Musk dampened such hopes Monday when he cautioned about hurdles to reaching mass production.

“Important note about Tesla Battery Day unveil tomorrow,” Musk stated via Twitter, often his go-to for communications about the company. “This affects long-term production, especially Semi, Cybertruck & Roadster, but what we announce will not reach serious high-volume production until 2022.”

The billionaire said Tesla would increase battery cell purchases from suppliers Panasonic, LG and CATL, but warned “we still foresee significant shortages in 2022 & beyond unless we also take action ourselves.” Tesla has built a prototype manufacturing line for battery cells at a lab in in Fremont, California, near the company’s U.S. car plant.

Tesla shares fell over 6% in after-hours trading as a result, after closing almost 2% higher on Monday at $449.39. Still, shares of the firm are up over 400% year-to-date on the back of a stock split and optimism around entry into the S&P 500. On Tuesday, the firm’s shares slipped about 4% in premarket to trade around $431.

– CNBC’s Lora Kolodny contributed to this report.



Source link

Discover

Sponsor

Latest

Junkyard Gem: 1981 Mercedes-Benz W126 S-Class with nearly 600k miles

I'm always on the lookout for cars and trucks with ridiculously high final odometer readings when I'm scouring the car graveyards for interesting...

What’s My Risk of COVID?

Nov. 9, 2020 -- As the coronavirus pandemic begins...

Study Confirms Minorities at Higher Odds of COVID

TUESDAY, Sept. 29, 2020 (HealthDay News) -- Black and Hispanic Americans are twice as likely...

FBI to make an announcement on a ‘major election security’ issue

The FBI briefing, set for 7:30 p.m. ET, comes less than two weeks before Election Day.The press conference came after the leaders of...

Investors must be careful to avoid being ‘whiplashed’

Currency dealers monitor exchange rates in a trading room at KEB Hana Bank in Seoul on November 4, 2020, as Asian markets react...