Musk sees no immediate boost from Tesla’s ‘Battery Day’ tech unveil

LG Chem and CATL shares rose after the comments.

But Tesla shares fell more than 5 percent to $425.50 in extended trade as the tweets cast doubt on whether Tesla would be able to produce its own batteries any time soon – a concern echoed by experts and industry officials.

The company’s stock was down 2.7 percent to $437.30 percent in premarket trading Tuesday.

“Battery firms believe it is not easy to mass produce batteries. It took them a lot of time … how can Tesla do it overnight?” a South Korean battery industry source told Reuters.

Tesla is working to produce new, bigger battery cells at its Fremont, Calif., facility, two people familiar with the matter have told Reuters. The new cells will have a diameter of 42 mm, versus the 21 mm ones made at its joint battery factory with Panasonic that are used in Model 3 sedans, the people said.

Pricing pressure

Tesla may have to partner with Panasonic to mass-produce its own cells, Seoul-based battery expert Park Chul-wan said.

The new batteries could boost energy capacity, cut costs and enable faster charging, helping Tesla cars better compete with gasoline ones, Park said.

Some battery industry officials are wary that Tesla’s move to produce batteries in-house could put pressure on prices.

“Tesla is sending signals to suppliers that they should further lower costs, and if not, Tesla would source more batteries in-house,” a former LG Chem official said.

At the event, Tesla may also unveil its “million mile” batteries, which it is developing with CATL and are expected to have much longer life: the equivalent of 1 million miles or more, versus about 500,000 miles now.

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