By Michael Liedtke and Tom Krisher 

Tesla is working on new battery technology that CEO Elon Musk says will enable the company within the next three years to make sleeker, more affordable cars that can travel dramatically longer distances on a single charge.

But the battery breakthroughs that Musk unveiled Tuesday at a highly anticipated event didn't impress investors. They were hoping Tesla's technology would mark an even bigger leap forward and propel the company's soaring stock to even greater heights.

Tesla's shares shed more than 6% in extended trading after Musk's presentation. That deepened a downturn that began during Tuesday's regular trading session as investors began to brace for a potential letdown. Musk raised those worries with a series of tweets Monday warning that Tesla's new battery technology might not be ready for high-volume production until 2022.

Musk reiterated that timetable during Tuesday's showcase and then added it might take up to three years before the battery technology translates into a new Tesla model selling for $25,000. That would be a dramatic markdown from Tesla's cheapest car now, the Model 3, a sedan that starts at $35,000 but usually ends up costing buyers more than $40,000.

“We don't have a truly affordable car and that is something we want in the future," Musk said during an event shaped by the restrictions imposed by a pandemic that requires people to keep their distance.

Besides lowering the price, Musk promised the new battery technology would help Tesla reduce the size of its vehicles by about 10% and extend their range by 56%. That projection implies the Tesla cars using the new batteries will be able to travel 500 miles (800 kilometers) or more on a single charge, surpassing the distance many gas-combustion cars can traverse before needing to refuel.

Musk took the stage before a mostly online audience, although there was a small group of shareholders who won a lottery for the right to sit in Tesla vehicles parked in a lot near the company’s Fremont, California, factory located about 40 miles (64 kilometers) southeast of San Francisco.

“It is a little hard to read the room with everyone in cars,” Musk joked as he began his presentation during an early phase of the event that was devoted to Tesla's annual meeting of shareholders.

But the shareholders in attendance frequently beeped their horns to provide a different form of applause as Musk rattled off Tesla’s accomplishments since the company held its last annual meeting 15 months ago.

Since then, Tesla has posted four consecutive quarters of profits to reverse a long history of losses, while boosting its production and laying the groundwork for future expansion by opening or beginning work on three more factories in Shanghai, Berlin and Austin, Texas. All that progress has caused Tesla’s stock price to soar by fivefold so far this year and boost the company’s market value to nearly $400 billion.

No one has benefited more from the run-up than Musk, who has seen his estimated wealth climbed to $89 billion — the fifth-largest fortune in the world, based on estimates by Forbes magazine.

“What happens when companies get bigger is things tend to slow down. We are going to speed up," Musk said Tuesday.

He said he believes Tesla will remain a step ahead of its competition in the electric vehicle market and persuade more consumers to abandon gas-combustion cars with its new battery technology. The breakthroughs that he outlined Tuesday involve some highly technical changes to the composition and design of batteries, along with new manufacturing processes.

Even as Tesla tries to set new standards in batteries, Musk made it clear that the company will also continue to rely on Panasonic and other suppliers.

Musk has a history of being too ambitious in his promises. For instance, 17 months ago, he bragged that Tesla was on the verge of breakthroughs in autonomous driving technology that would enable the company to deploy a fleet of robotic taxis by the end of this year.

He has since backpedaled slightly from that goal, although Tuesday he said he believes Tesla's $25,000 car will be capable to driving on its own.

____

Krisher reported from Detroit.

Share:
More In Technology
Tesla Files Proposal a 3-for-1 Stock Split
The electric vehicle maker filed a proposal for a three-for-one stock split, increasing the accessibility of shares for investors for a stock trading at around $700 a share. The move comes not long after tech giant Amazon announced a 20-for-one split. The number of authorized shares rises from two billion to six billion. It was also revealed that board member Larry Ellison does not intend to stand for reelection as it pertains to Tesla.
Biden Proposes New Rule to Add 500,000 EV Chargers Nationwide
President Biden proposed a new rule that would add 500,000 chargers for electric vehicles nationwide. The proposal comes amid the rapid shift to EVs with dozens of automakers announcing plans for all-electric fleets within the next decade. But with the new surge will the U.S. have the proper infrastructure to keep up? Scott Painter, founder and CEO of Autonomy.com joined Cheddar's Opening Bell to discuss. "I really think the idea of standardization is a big deal. Standardization certainly makes it much better for everybody to be able to get a charge when they need one," he said.
RapidAPI Raises $150 Million to Empower Developers to Innovate and Build Software Faster with APIs
API platform RapidAPI recently became a unicorn with a $1 billion valuation after raising $150 million in a Series D funding round led by Softbank Vision Two Fund. Microsoft's Venture Fund, M12, and Andreessen Horowitz also participated. RapidAPI says it provides the world's largest API hub which enables millions of developers and companies to build software faster. Iddo Gino, founder and CEO of RapidAPI, joins Cheddar News' Closing Bell to discuss.
Behind Meta Pivot on Name and Ticker Amid Fears of Approaching Recession
Facebook parent Meta officially has changed it’s ticker symbol from ‘FB’ to ‘META’. Paul Meeks, a portfolio manager, Independent Solutions Wealth Management, and a professor of practice in the Baker School of Business at The Citadel, joined Cheddar News to discuss why the tech giant has had to make big changes to its name, its ticker, and its business plans. "When you see what's happening in digital advertising — and there was a slowdown there even before the threat of a recession, which could cause a even more drastic slowdown next year — they had to pivot," he said. Meeks noted he sees Facebook dominating in the metaverse space going forward — whatever that may end up being.
Want to Get in on Long Distance Dating? Bumble's Shan Boodram Has Tips
In a recent Bumble survey, more than a third of respondents revealed that they would be willing to date people in other cities. Shan Boodram, a sex and relationships expert for the app, joined Cheddar News to talk about the long-distance dating trend and tips on how to go about taking part. "I think this is the magic of what we experienced over the past couple of years, is that we have already learned the tools necessary to stay connected with people despite not being able to be close to them," she noted. Boodram also pointed to Bumble's travel mode and using video conferencing in order to ease into such relationships.
Load More