Investors heard what CEO Elon Musk had to say, but it didn't translate into a stock bounce.
It all started with Gran Turismo. From those early PlayStation days, Sean was drawn to anything with four wheels. Prior to joining the Roadshow team, he was a freelance contributor for Motor Authority, The Car Connection and Green Car Reports. As for what's in the garage, Sean owns a 2016 Chevrolet SS, and yes, it has Holden badges.
much-hyped Battery Day is behind us, and while there was plenty of interesting news, none of it will have an immediate impact on Tesla's vehicles. That, apparently, didn't sit well with Wall Street.
At the market's open, Tesla shares are down 5.4% at the time of this writing. Shares closed down 5.6% Tuesday and fell another 6.9% during after-hours trading, according to Reuters. The downturn wiped $50 billion in value from Tesla stock, which has been a hot ticket in recent months.
Musk appeared to warn fans and investors alike ahead of the Battery Day presentation that nothing announced would have an immediate impact on the carmaker. Instead, he mentioned "serious high-volume production" for 2022. As for what Tesla does have planned, a "biscuit tin" battery cell is the biggest takeaway. The new cell design can pack five times the energy of today's cells used in Tesla vehicles. Musk said this will likely translate to a 16% improvement in vehicle range. The new cells will also be easier to produce, which will help Tesla build its cars at a cheaper cost.
That creates the potential for a new affordable Tesla, as in a $25,000 model. Musk directly mentioned this type of car during the presentation, but again, this car isn't coming tomorrow, nor next year. Musk said it's likely three years out and will benefit from battery and manufacturing cost reductions he partially laid out on Tuesday.