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Tesla Inc (NASDAQ: TSLA) stock dropped approximately 4.20% in respect to yesterday’s close, to trade around $430.50 during Tuesday’s premarket. Notably, the shares had managed to add around 1.64% on Monday. The sudden drop of Tesla stock during Tuesday’s premarket is largely attributed to comments made by its CEO, Elon Musk about Battery Day.
With recent Tesla stock shaky near future fundamentals, a significant portion of investors sold off their stake ahead of the announcement today, Battery Day. However, Tesla shares still remain up in the wider picture, whereby they have added around 437.12% YTD through Monday. In addition, they have jumped approximately 124.30% in the past three months, and added around 11.05% in the past 30 days through September 21. There are approximately 931.81 million outstanding shares with a market capitalization of around $412 billion as of the time of publication.
Tesla is facing increased competition in the electric vehicle industry both in its home market and overseas. Some of the immediate challenges that the company is facing includes pricing of its products. Battery cell upgrade and mass production to ease the market price of its vehicle models.
Tesla Stock and Battery Day
TSLA stock future is heavily underpinned by the grounds the company is laying down now. Tesla Inc. will be announcing its future prospects to its customers, investors and also analysts. As a result, the company will be in a position to understand the market through the response it gets from today’s announcements. In addition, it will set its path known for any investor willing to put their capital with it for the next two years.
According to the series of tweets by Musk, Tesla is largely going to focus on battery cell production, which should take maximum speed in two years. He said:
“Important note about Tesla Battery Day unveil tomorrow. This affects long-term production, especially Semi, Cybertruck & Roadster, but what we announce will not reach serious high-volume production until 2022.”
However, Musk hinted that although the company is currently dependent on outside sourcing for battery cells, Tesla might seek alternative means specifically in-house jobs. He explained:
“We intend to increase, not reduce battery cell purchases from Panasonic, LG & CATL (possibly other partners too). However, even with our cell suppliers going at maximum speed, we still foresee significant shortages in 2022 & beyond unless we also take action ourselves”.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
