Shares of Tesla stalled out on Wednesday after the electric car maker revealed lots at its highly anticipated "Battery Day" event, save for an actual new battery.
Tesla shares downshifted further on Wednesday, accelerating the company’s market-cap losses after its Battery Day came in long on future promises of a better and cheaper battery and a $25,000 mass-produced car but short on current announcements.
Tesla’s market cap dropped $20 billion in just two hours after trading closed Tuesday, as Musk and other Tesla executives virtually and in person rolled out their new battery and manufacturing plans.
Tesla did unveil plans for a new battery cell and battery production line which the company believes will allow for 54% more range, reduce battery costs per kWh by 56%, and cut required investments by 69%.
However, the longer-term nature of those plans underwhelmed investors, who prior to the event had pushed Tesla stock up by more than 400% this year, with anticipation about the battery day fueling a large part of the gains.
All told, some $50 billion has been erased from Tesla’s market value as of Tuesday. The underwhelming nature of the event itself prompted those losses to accelerate on Wednesday, with the stock down 3.09% at $411.11 in trading on Wednesday.
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