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Tesla’s capitalization fell overnight by $ 50 billion. It was investors’ reaction to Elon Musk’s speech and statements by other company executives at the company’s event Tuesday, which announced a new battery for its electric cars.
This huge number shows how much the value of the company has increased in the last year, according to Sky News.
In September 2019, the total value of Tesla’s shares was $ 39 billion. Now, the capitalization of the company has reached 390 billion, which means an increase of 1,000%.
On Tuesday, the company’s shares closed the trading day with a decline of 5.6% and fell another 6.9% in the following hours. The reason: Investors were disappointed, because they expected Tesla to announce a significant reduction in the price of an electric vehicle, which did not happen.
Instead, Musk and other Tesla officials laid out the company’s new business technologies and production strategies, but explained that they wouldn’t be ready for a few years.
“In three years, we will be able to produce a $ 25,000 car that will be even better than a similar gasoline car,” Musk said.
Producing an electric car accessible to the general public “has been our dream since the beginning of Tesla,” Musk said. But the new model announced is far from this dream. The Model S Plaid cost $ 140,000 (€ 120,000).
And the new batteries can be produced in 3 years. Although this field is extremely interesting for investors, the news announced by the company was disappointing.
“Nothing Musk said about batteries is certain. There was nothing tangible,” Craig Irwin, an analyst at Roth Capital Partners, was quoted as saying by Reuters.
Editing: Monica Bonea
