Elon Musk announced Tesla’s future plans as part of the Battery Day event. However, the shareholders of the American electric car manufacturer were disappointed, Tesla’s shares are falling.
This week, Tesla organized the eagerly awaited Battery Day event, at which Elon Musk presented several upcoming news. He announced plans for a new cheap electric car, admitted work on revolutionary batteries integrated into the body structure a Revealed Sharp Model S Plaid. However, Tesla shares reacted to Tuesday’s Battery Day with a decline.
On Wednesday, the share price of Tesla fell by 9.7%. And although the price rose briefly during the day, the decline continued. As a result, the market value of the company fell by almost $ 70 billion in just 48 hours, which is roughly 1.6 trillion crowns.
The value of shares fell at the beginning of the week, even before Battery Day, which experts explained by shareholders’ concern about whether the carmaker will be able to meet the targets for the third quarter of the year. They expect that the number of cars delivered may be lower than expected during this period.
However, Battery Day raised great expectations in investors, which were to result in a reduction in the loss of value of shares and even an increase in the value of the company, but in the end everything was different.
Environmental experts explain that shareholders are disappointed with Battery Day. The action postponed several times did not bring any concrete results. Although Elon Musk spoke at Tuesday’s event about a number of Tesla plans for the coming years, none of them are being implemented. Even the introduced Model S Plaid will arrive “by the end of 2021.”
In addition, shareholders reportedly expected two major announcements, namely the development of batteries with a lifespan of over a million miles and specific plans to reduce the cost of developing and manufacturing electric cars, which would reduce their price compared to conventional cars with internal combustion engines. But nothing like that happened on Battery Day. Muska’s promises that new technologies would halve the cost of batteries were also just ambitious speeches that would not bring tangible results in the immediate future.
In addition, past experience confirms that many of Tesla’s plans have lagged behind previous statements in previous years. Maybe that’s why analysts’ opinion on whether to sell Tesla shares or buy them is currently quite balanced.
So far this year, Tesla has been one of the favorite companies of investors, the share price even for a while attacked the limit of $ 2,000 per piece (45,000 crowns). However, when they are distributed so that they are accessible to smaller investors, they are traded at a price in the lower hundreds of dollars.