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Tesla (TSLA) stock price lost 5.60% yesterday and it is falling today in the pre-market as well.
The shares of electric automaker Tesla Inc (NASDAQ: TSLA) is yet to regain its bullish momentum as the stock plunged low starting on Tuesday following reports that the company may not meet investor’s expectations at its much-anticipated battery day presentation event. Per Coinspeaker’s earlier report, Tesla (TSLA) stock which gained 1.64% on Monday traded at a loss of 4.2% in the pre-market on Tuesday. While the stock was expected to pick its momentum, the loss has been sustained after the stocks closed Tuesday trading at a 5.60% low, with a further 4.42% plunge in Wednesday pre-market.
The bad days the stock is facing comes after CEO Elon Musk expressed pessimism that dampens investor’s hope, spurring some to engage in impulsive sell-offs. Ahead of the company’s annual meeting of stockholders and Battery Day presentation, CEO Elon Musk said the announcements made earlier will not reach serious high-volume production until 2022. Per his words:
“Important note about Tesla Battery Day unveil tomorrow. This affects long-term production, especially Semi, Cybertruck & Roadster, but what we announce will not reach serious high-volume production until 2022.”
As the highly expressive CEO noted, the company aims to beat the competition by continuing to source for battery cells from its suppliers including Panasonic Corporation (TYO: 6752), LG Electronics Inc (KRX: 066570), amongst others. Musk is particularly concerned about the longer-term sustainability of the battery supplies to power its Semi, Cybertruck, and Roadster cars beyond 2022. Tesla’s projection of not reaching high production volumes by 2022 is due to the difficulty in scaling the battery cell prototypes. He said:
“The extreme difficulty of scaling production of new technology is not well understood. It’s 1000% to 10,000% harder than making a few prototypes. The machine that makes the machine is vastly harder than the machine itself.”
Amid TSLA Stock Plunge, Record Tesla Cars Deliveries Anticipated
In a bid to sustain the pace set by the company in its Q2 report with respect to its car deliveries, CEO Elon Musk has sent an email to his employees urging them to bear in mind that maintaining a record car delivery for the quarter is a top priority.
“We have a shot at a record quarter for vehicle deliveries, but will have to rally hard to achieve it. This is the most number of vehicles per day that we’ve ever had to deliver. Please consider vehicle deliveries to be absolute trop priority. It’s also extremely important that we keep factory output as high as possible over the remaining 10 days. This is vital for the California market,” he noted.
In Q2 2020, Tesla (TSLA) delivered about 90,650 vehicles against the expected 72,000 giving allowance to the effects of the COVID-19 pandemic in the quarter. With barely seven days to the end of the current quarter, Tesla aims to surpass this number in a growth sustaining push.