Tesla (TSLA) stock has taken a big 10% tumble today as the market digests the Battery Day announcement and Tesla suffers a significant network outage.
To be fair, the market has taken a downturn during the second half of the day, but Tesla’s stock was already taking a big hit before the broader market followed.
Tesla closed at $380 per share — down more than 10%.
The bulk of the slip can likely be attributed to the market being disappointed by Tesla’s Battery Day.
Tesla unveiled its strategy to bring its own battery cell to mass production with a 56% reduction in cost.
TSLA stock price also dropped on the news that Tesla’s network is experiencing some major issues:
While Tesla’s app and website were down temporarily and sporadically throughout the day, the bigger concern is that Tesla’s internal systems are also down.
Sources told Electrek that Tesla is having issues with processing orders, deliveries, and service since this morning.
Tesla still hasn’t commented on the issue and the reason behind the system outage is still unknown.
It’s happening at a critical time for Tesla as the automaker is in the middle of its end-of-the-quarter delivery push.
Electrek’s Take
I can understand why the market is disappointed by Tesla’s Battery Day. There were a few things that were disappointing.
Tesla released a bunch of battery cost reduction stats based on systems that they admit not having fully deployed yet and are dependent on them ramping up production over the next three years.
In terms of short-term and mid-term impact, the Battery Day didn’t have much to offer. To be fair, Elon Musk kind of warned us about that a day before.
One of the things that we thought might be announced and immediately available, or at least available fairly soon, was Model S Plaid, and Tesla announced that it won’t be available until late 2021.
Therefore, I think it’s fair to say that the timelines announced on Battery Day were disappointing.
As for the long term, I would argue that Tesla has exceeded expectations. There are some new technologies unveiled yesterday that could truly change the auto industry if they are delivered.
But the market doesn’t like the “if.”
If anything, this tumble is good for people that believe that Tesla will indeed deliver those innovations because it looks like the market is not really believing that Tesla is going to be able to execute, at least not completely, on the announcements.
As for the outage, it will start to be a concern if Tesla hasn’t been able to fix the issue completely after five hours.
Considering Tesla was recently the target of a hacking attempt, it’s not impossible that a cyberattack is involved, but we won’t know until Tesla releases some details.
That’s the problem with Tesla not having press relations anymore, and already not being great at communications to begin with.
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