Tesla’s value drops by $50bn after Elon Musk’s ‘Battery Day’ presentation
Electric car tycoon pledges to roll out $25,000 fully autonomous vehicle - in three years
Tesla is on track to manufacture a new generation of electric vehicle batteries that will be more powerful, cheaper and longer lasting, Elon Musk has announced.
The company founder told shareholders that Tesla’s new larger cylindrical cells would provide five times more energy, six times more power and 16% greater driving range. Musk unveiled the new technology, which he hailed as a “massive breakthrough”, during a live presentation yesterday at his firm’s annual “Battery Day” event, reports The Independent.
The US tycoon also “teased the possibility” of what he termed “an affordable car”, says the BBC. But as the broadcaster notes, “the technology announced is likely to take years to implement”.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
“We’re confident that around three years from now we’ll be able to offer a very compelling $25,000 vehicle, which is also fully autonomous,” Musk said, adding that producing affordable EVs “has always been our dream from the beginning of the company”.
“That’s something we will have in the future,” he continued. “But we’ve got to get the cost of batteries down.”
How did investors react?
The socially distanced presentation saw Musk addressing 240 shareholders who were each sitting in a Tesla Model 3 outside of the firm’s vehicle plant in Fremont, California.
The meeting also marked the unveiling of a Telsa new car: the Model S Plaid. The 520-mile range sedan can reach top speeds of up to 200mph and has a price of $139,990 (£110,249).
But while the gathered shareholders “honked their car horns in approval” at the various offerings, others were clearly less impressed, Reuters reports.
Investors are said to have expected two significant announcements at Battery Day: the development of a “million mile” battery good for ten years or more, and a specific cost-reduction target that would drop the price of EVs below those of gasoline cars.
“Musk offered neither,” says the news agency.
In the wake of that disappointment, Tesla’s stock price fell by almost 7% yesterday, with the firm’s market value slashed by $50bn (£39.3bn) by the close of trading.
Roth Capital Partners analyst Craig Irwin told Reuters that “nothing Musk discussed about batteries is a done deal. There was nothing tangible.”
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Mike Starling is the former digital features editor at The Week. He started his career in 2001 in Gloucestershire as a sports reporter and sub-editor and has held various roles as a writer and editor at news, travel and B2B publications. He has spoken at a number of sports business conferences and also worked as a consultant creating sports travel content for tourism boards. International experience includes spells living and working in Dubai, UAE; Brisbane, Australia; and Beirut, Lebanon.
-
Today's political cartoons - November 2, 2024
Cartoons Saturday's cartoons - anti-fascism, early voter turnout, and more
By The Week US Published
-
Geoff Capes obituary: shot-putter who became the World’s Strongest Man
In the Spotlight The 'mighty figure' was a two-time Commonwealth Champion and world-record holder
By The Week UK Published
-
Israel attacks Iran: a 'limited' retaliation
Talking Point Iran's humiliated leaders must decide how to respond to Netanyahu's measured strike
By The Week UK Published
-
The government's growing concern over a potential US Steel takeover
In the Spotlight Japan's largest steelmaker, Nippon Steel, is attempting to buy the company
By Justin Klawans, The Week US Published
-
Is Tesla finally in real financial trouble?
Talking Points Elon Musk's once-dominant electric vehicle company is facing falling profits and unfulfilled promises of future advances
By Rafi Schwartz, The Week US Published
-
Tesla investors back Musk's $48B payday
Speed Read The company's shareholders approved a controversial compensation package for CEO Elon Musk
By Peter Weber, The Week US Published
-
Elon Musk's future at Tesla may hang in the (very expensive) balance
Talking Points The iconic electric vehicle's board must convince shareholders it's worth awarding their tech titan CEO a $50 billion pay compensation package — or he might walk
By Rafi Schwartz, The Week US Published
-
Musk clears Tesla self-driving hurdle in China
Speed Read The Tesla CEO won China's approval to introduce Full Self-Driving (FSD) cars
By Peter Weber, The Week US Published
-
Why is Tesla stumbling?
In the Spotlight More competition, confusion about the future and a giant pay package for Elon Musk
By Joel Mathis, The Week US Published
-
Tesla cuts prices in 'intensifying' EV war
Speed Read Electric vehicle giant has struggled in the face of weakening demand, competition from China and technical setbacks
By Arion McNicoll, The Week UK Published
-
Chinese electric cars may be coming to spy on you
Talking Points The Biden administration investigates Chinese electric cars as a potential economic and national security threat
By Harold Maass, The Week US Published