No quick increment from Battery day event
The CEO of the leading automaker company, Tesla, Elon Musk told that enhancements to be released at the Battery Day event which would not capture much-needed high-production until 2022, making its shares lower. Analysts were anticipating the CEO of Tesla to launch the Battery Day event plans for the automaker firm to develop its own battery cell as it wants to implement its steer over General Motors, Volkswagen and others.
Mr. Musk stated that this impacts longer production, mostly Semi, Roadster and Cybertruck, but what we declare will not reach high production until 2022. The company expects essential shortages in 2022 and beyond, the CEO cautioned, including it expected to gain cell purchases from Panasonic, LG Chem and CATL and potentially other partners. The shares of LG Chem and CATL increased after the comments.
But the shares of Tesla dropped over five percent to nearly $425.50 in expanded trade as the tweets raises doubt on whether Tesla would be able to develop its own batteries any period soon, a worry elaborated by the industry officials and specialists. A South Korean Battery industry said that Battery companies hope it is not easier to produce batteries in massive numbers. It needed a lot of time, then how can Tesla make it overnight?
The automaker giant is working to develop, all new, larger battery cells at its Fremont factory. Reportedly, the new battery cells will have a diameter of around 42 mm vs the 21 mm ones that developed at its joint battery plant along with Panasonic that are utilized in Model 3 sedans. The firm may have to associate with Panasonic to mass- production of its own cells, said by Park Chul-wan, the Seoul-located battery expert.
The new batteries could increase energy capacity, drop costs and offer faster charging, while helping Tesla vehicles better compete with gasoline ones, said by Mr. Park. Some officials of battery industry are concern that the move of Tesla to implement batteries in-house would place massive pressure on prices. At the Battery Day event, the firm may also release its million mile batteries which it is producing with CATL and are likely to have longer life as equivalent of one million miles or more as compared to 500,000 miles now.