Tesla Battery Day & Shareholder Meeting Rescheduled: Implications and Product Updates
Shareholder Meeting Rescheduled, Battery Day Date
Over the weekend, Elon Musk announced on Twitter that Tesla (TSLA) -Get Report would be rescheduling their 2020 annual shareholder meeting due to continued restrictions on gatherings of large groups. The meeting, originally scheduled for July 7th, will now be tentatively scheduled for Tuesday, September 15th and will coincide with Tesla's highly anticipated Battery Day.
"Tentative date for Tesla Shareholder Meeting & Battery Day is Sept 15. Will include tour of cell production system." - Elon Musk
While the media has picked up on Tesla's target for a 1 million mile battery and the potential implications for vehicle-to-grid technology, there are many other factors that are likely to be covered during battery day.
- Scale of production / production process
- Cost per kWh
- Power and charge rate
- Energy density
- Battery chemistry
These factors have not received quite as much attention, but Musk's tweet alludes to the importance of the less consumer-facing factors, like production. Tesla's plan to include a tour of a "cell production system" all but confirms Tesla's intention to continue further vertically integrating through the battery supply chain. Currently, Tesla relies on partners such as Panasonic and Contemporary Amperex Technology Co. Limited (CATL) for battery cell production.
Despite Tesla pursuing their own battery cell production, they will likely continue to work with external suppliers due to the sheer quantity of battery cells Tesla will need in the coming years. Earlier this month, Tesla reached a new agreement with Panasonic for battery cell pricing through Q1 of 2023.
Tesla Product Updates
Musk responded to a number of different product related questions and proposals on Twitter over the weekend. One such tweet announced that Tesla would be temporarily lowering the price of retroactively adding basic Autopilot functionality to Tesla vehicles that were not originally configured with that option from $3,000 to $2,000.
This should encourage some owners to take advantage of the discount before the July 1 expiration, coinciding with the end of Tesla's second quarter. Basic Autopilot has been included as standard for awhile, so this only impacts a small part of Tesla's fleet, but the temporary discount will help drive revenue and gross profit for Tesla in Q2.
Musk also said he expects the 7-seat interior Model Y to begin production in Q4 of 2020, ahead of the schedule on Tesla's website.