Shares of Tesla Inc. (TSLA) - Get Report fell in after-hours trading Monday after CEO Elon Musk tweeted that the company plans to boost battery cell purchases from suppliers and foresees “significant shortages in 2022 & beyond unless we also take action ourselves.”
The tweets come a day before Tesla’s widely anticipated “Battery Day” event Tuesday at which the company is expected to reveal new battery cell technology that would significantly boost battery life.
In his tweets, Musk said that notwithstanding the announcement, Tesla intends to increase purchases of battery cells from third-party suppliers. The announcement pertains more to long-term production, particularly for semi, cybertruck and roadster vehicles and won’t reach high-volume production until 2022, Musk tweeted.
The Street’s Jim Cramer said investors are expecting big things from the “Battery Day” announcements.
“The bar’s gotten very high,” Cramer said in an interview on Street Lightning. “If he does not show something that indicates he’s got a battery that is game-changing, then we’re going to suffer from the same overhang that we had when Tesla was supposed to be added to the S&P 500.”
Tesla shares ran up sharply ahead of the latest rebalancing of the S&P 500 earlier this month, only to fall when the stock wasn’t added to the benchmark stock index as expected.
Stocks with connections to Elon Musk's electric vehicle maker ended mixed Monday.