Tesla’s Battery Day Caused a Collapse of Shares

The long-awaited Tesla event has finally arrived where multiple novelties have been presented. In this, Elon Musk discussed plans for a million-mile battery, the removal of components like cobalt from his batteries, and the process to lower his vehicles’ costs. Also confirmed was the arrival of a smaller Cybertruck for the European market, the arrival of the most radical version of the Model S, and an economic model’s launch.

All this has undoubtedly given much to talk about and show the enormous growth potential that the American manufacturer still has. But all this has not convinced investors, which has caused a collapse of the shares in the post-market where the shares have lost 7% in just 4 hours, while today it has a decrease of 7.8% at the moment.

It is not that the news is few or low drafts, on the contrary, the problem seems to be that the deadlines set by Tesla are longer than expected.

During the presentation, Musk indicated a period of between two and three years for the start of many of these novelties. A reasonably long time where investors think that too many things can happen and that there are also many fronts for Tesla that will face a titanic job to meet its challenges.

For the specialized portal MarketWatch, this dynamic indicates that investors want immediate results and not promised future success. Gene Munster of Loup Ventures has shared that long-term investors make their plans annually and 3 years in the future is “a long time.” That said, “everything they spoke had substance. But investors wanted to see something already in the short term”.

From the Munster consultancy, the vertical integration of Tesla is valued. A starting bet puts it one step ahead of the industry even at the cost of short-term results. Without a doubt, the part that many investors liked the least.

The reasons for this pessimism lies in factors such as the announcement of the launch of a model below the Model 3, priced at $25,000. A movement of great significance involves fully entering a volume segment, but which will not start production until 2023 at the earliest.

There is also the announcement that the Semis, the Cybertruck, and the new Roadster will not have significant production until the new battery production lines are ready, which will also mean an expansion until 2022.

Even a symbolic model like the Model S Plaid will not finally arrive in 2020 as planned but will do so at the end of next year. More than a year later than originally planned, and that is if there are no further delays.

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