Elon Musk, CEO of Tesla, presented important innovations on Tuesday on the hyped “Battery Day”. For example, the batteries would become much cheaper and more efficient, so a self-driving electric car would only cost $ 25,000. Still, Tesla’s market value collapsed after its performance: These are promises that require at least another three years of patience. And Musk sometimes dares to make false promises.
During the performance, 240 shareholders sat in a Tesla Model 3 in a parking lot in front of the stage and honked like applause. More than 270,000 people watched online. A new car model was introduced: the Model S Plaid, a sedan that can travel up to 320 km / h and 837 km and can be delivered for almost 140,000 dollars (120,000 euros) from 2021.
The most important innovations, however, concerned the battery. Musk promised to cut the cost of this in half in the coming years to make an affordable electric car possible. In three years, a self-driving vehicle would sell for $ 25,000. Building an affordable electric car “was our dream from the start,” says Musk.
The new generation of batteries proposed by Musk would not only be cheaper, but also much more powerful and long-lasting. They would provide five times more energy and six times more energy and could travel a much greater distance. The cylindrical batteries would also become an integral part of the vehicle structure.
In the gigafactory in Nevada, battery cells are recycled and hardly any cobalt – one of the most expensive materials – is used. Tesla would acquire rights to a lithium mine in Nevada. The company’s own battery cells would be manufactured in highly automated factories in various locations around the world, starting with California.
Musk admitted that the manufacturing processes for the innovations are not finished yet. It would take between a year and a half for some of the improvements to be put into practice and about three years to reach all of them, he said.
Given the previously missed targets, investors lowered the market value after the announcements. According to Reuters, around 50 billion dollars (42.81 billion euros) were lost. The stock fell -7.7 percent after close of trading after closing at $ 424.23, Bloomberg reports.