Elon Musk tempers expectations for Tesla ‘Battery Day,’ stock dips 5%

(Reuters) – Tesla Inc TSLA.O CEO Elon Musk on Tuesday is scheduled to showcase the company’s advanced battery technology, with investors expecting he will outline how the company’s electric vehicles will surpass the cost and convenience of internal combustion engines.

FILE PHOTO: Tesla Inc CEO Elon Musk speaks onstage during a delivery event for Tesla China-made Model 3 cars at its factory in Shanghai, China January 7, 2020. REUTERS/Aly Song

But stockholders began selling the electric carmaker’s shares after Musk late on Monday tempered expectations by saying that the battery improvements to be unveiled at the event would not reach “serious high-volume production” until 2022. Shares dropped 5.6% on Tuesday to $424.26.

As automakers shift from horsepower to kilowatts to comply with stricter environmental regulations, investors are looking for evidence that Tesla can increase its lead in electrification technology over legacy automakers who generate most of their sales and profits

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