Tesla Battery Day Prompts Stock Fall: 3 Years Is Too Long a Wait for Innovations

Elon Musk holding "a panic monster" for the 'Gram 1 photo
Photo: Instagram / Elon Musk
The highly-anticipated Tesla Battery Day 2020 came and went and, despite CEO Elon Musk’s attempt to dampen expectations ahead of the event, they were still through the roof.
At the meeting, Elon Musk touched on a variety of issues, including plans for a “million-mile” battery that would be guaranteed to last for the entire lifetime of an electric car, eliminating cobalt from batteries to make them more affordable and, in the process, to make EVs cheaper, the Cybertruck prototype and plans to make a smaller version for the European market, and the outstanding performance of the Model S Plaid. And that’s just skimming the surface.

As the industry and customers watched and were no doubt pleased to learn of Tesla’s plans, which would see EV production become an exclusive in-house affair, investors were somewhat underwhelmed. It’s not that the promised innovations per se were not up to par with their expectations, but rather that the timeframe offered to bring them to fruition was too big.

As Musk stressed on Twitter the day before Battery Day, all the innovations announced “will not reach serious high-volume production until 2022.” During the meeting, he offered a 2022-2023 timeframe, and stressed that many challenges and a lot of hard work await before they can have “a clear path to success.”

For some investors, 3 years is too long a wait. Tesla stock fell by almost 7 percent after Battery Day, with MarketWatch noting that it’s a clear sign that investors want immediate results, and not the promise of success farther down the road.

Gene Munster with Loup Ventures tells the publication that, as a rule, long-term investors make their plans on a yearly basis. and 3 years off into the future is “just a long time.” That said, “everything they talked about had substance. But investors wanted immediately,” Munster explains.

To each their own, as the saying goes, Munster adds. Tesla is going for full vertical integration, which puts it one step ahead of the industry. In other words, take a small loss today, win big tomorrow.

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About the author: Elena Gorgan
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Elena has been writing for a living since 2006 and, as a journalist, she has put her double major in English and Spanish to good use. She covers automotive and mobility topics like cars and bicycles, and she always knows the shows worth watching on Netflix and friends.
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