The Tesla Inc (NASDAQ: TSLA) share price was down 5.60% overnight in US trading to US$424.23. This, however, was prior to Tesla's 'Battery Day' event at which CEO, Elon Musk, announced positive news to shareholders. Despite the upbeat announcements, the Tesla share price continued to fall in after hours trading sessions, dropping nearly 7% in only a couple of hours. It will be interesting to see what effect the announcements continue to have on Tesla shares when US markets open late tonight (Australian time).
Image source: Getty Images
What was announced?
Tesla will work to start producing a car that costs $US25,000 as it aims to bring down the cost of its production. The company has a goal to bring the cost of Tesla vehicles closer to the cost of cars running on conventional fuels.
The electric car maker is taking a range of initiatives aimed at bringing down the cost of batteries including introducing 'tabless' batteries. The new batteries will be produced in house and increase the power of Tesla's vehicles while bringing down costs. The range of Tesla's vehicles will be increased by 16% using the new batteries.
Tesla will also start to produce cathodes, a key component of electric vehicle batteries, in house in the future. Additionally, it is making improvements to its processes which will make cathodes 76% cheaper whilst producing zero waste water. Tesla's cathode production will also eliminate cobalt, which is often unethically sourced, and reduce the volume of nickel required, which is in short supply.
According to Tesla, it will soon release another car model named the Model S 'Plaid'. This will become Tesla's highest powered car and will be able to go from 0-60 miles per hour in 2 seconds with a maximum speed of 200 miles per hour. The vehicle will be able to travel 520 miles between charges. It will also cost more than Tesla's current offerings at US$139,990.
About the Tesla share price
Tesla is a manufacturer of electric cars, batteries and renewable energy technology. It has been listed on the Nasdaq since 2010.
In August, Tesla stock was split 5-for-1, meaning shareholders now hold 5 Tesla shares for every 1 share they originally held.
In the second quarter of 2020, Tesla had US$104 million in net income according to generally accepted accounting principles (GAAP) and US$451 million non-GAAP income. It had cash and cash equivalents of US$8.6 billion at the end of the second quarter.
The Tesla share price is up 871.44% since its 52-week low of $43.67, it has increased 393% since the beginning of the year. The Tesla share price is up 779.23% since this time last year.
