Tesla tumbled on Wednesday following a disappointing Battery day event which was much anticipated by investors.
Tesla is down by more than 9%, trading at $384.56 per share at the time of this report
Analysts said cost savings from the firm’s new battery-cell technology “remains a foundational goal” that should lift Tesla above its competition.
Although Tesla CEO Elon Musk announced plans to produce a $25,000 electric vehicle in the next three years and revealed a new top-of-the-line specification for its Model S sedan, the much awaited information about million-mile was not forthcoming.
“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” Elon Musk later wrote in a tweet on Tuesday.
According to Business Insider, “the company’s valuation already rested on expectations of cost-cutting and production innovations, Robert W. Baird analyst Ben Kallo wrote in a note seen by Bloomberg. The Tuesday event ended without any near-term catalysts, he added, leaving investors and analysts “cautious about demand given the recessionary environment.”
Tesla closed at $424.23 on Tuesday, up roughly 411% year-to-date.
The electric car company has 24 “buy” ratings, 40 “neutral” ratings, and 26 “sell” ratings from analysts.