fell by 5% in pre-market trading on Wednesday, a day after the company saw $50 billion disappear from its market value following its annual"Battery Day" at which founder Elon Musk said customers would have to wait another couple of years for cheaper cars.
At the company's annual shareholder gathering on Tuesday, Musk announced plans to build a cheap electric car with a price tag of $25,000 that will use significantly cheaper batteries. Musk said:"In three years . . . we can do a $25,000 car that will be basically on par , maybe slightly better than, a comparable gasoline car," Musk said.on Monday that the developments announced during the event won't reach high-volume production until 2022, leaving investors with little in the way of immediate concrete developments.
Tesla's stock price closed 6% lower at a price of $424.23. The stock lost another 7% in after-hours trading. The company's market cap is now around $389 billion.Like many other producers, Tesla sources its batteries from other big producers so it can focus on its key goal of producing electric cars. But Tesla said at the event it plans to develop a"tabless" battery which could lead to better power and range for for electric cars.
Musk said he plans to build around 20 million vehicles, but fell short of providing a specific timeline. By way of comparison, Volkswagen, the world's largest producer built 11 million cars in all of 2019.
Tesla deviated to focus on fancy 0-60 criteria cars on account of low price car. As normal user (as the majority car consumers) the 0-60 performance and some other fancy features aren't important, we admire low price, high range, low maintenance cost factors than any thing else!
Tesla and Nikola....which one do you own Is NKLA a company or just a Business Plan ?