Tesla’s Stock Takes a Beating
Tesla boss Elon Musk claimed that his company plans to slash EV battery design and manufacturing costs so much, it will be able to offer a self-driving EV for $25,000. Then Musk admitted the car wouldn’t be available for three years because neither the new car nor its battery designs and manufacturing processes are complete. Tesla stock took a beating after that, with shares closing down 5.6 percent and dropping another 6.9 percent after hours.
Reuters reports that investors were looking for two big announcements from Musk at his company’s Battery Day: The development of a million-mile battery good for 10 + years and cost-reduction targets that would drop the price of an EV below a gasoline-powered car. Musk offered neither. Instead, he claimed that over the next several years he’ll slash battery costs in half with new technology and processes as well as deliver an “affordable” EV. Musk had previously downplayed the immediate benefits of the new battery technology to be unveiled in a couple of tweets.
Tesla has missed several production targets over the years.
Speaking to around 270,000 people on line, Musk claimed that from the beginning Tesla has wanted to build an affordable electric car and to help cut costs. Musk described new batteries that he claims are going to last longer, be more powerful, and half the price of the cells the company uses today. He also claimed the company’s new larger cylindrical cells, due in three years, will provide five times more energy, six times more power and far greater driving range. These new cells will initially be built on a new assembly line near Tesla’s Fremont, California plant.
To help cut costs Musk said Tesla would recycle battery cells at its gigafactory in Nevada. He also claimed the company would cut to zero the use of cobalt, among the most expensive battery materials.
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