The Mercury News

After hype from Musk, ‘Battery Day’ kicks off

- By Tina Bellon

Tesla Inc CEO Elon Musk fired up fans and investors for the company’s “Battery Day” on Tuesday, even as he tempered expectatio­ns that Tesla’s electric vehicles will soon surpass the cost and convenienc­e of traditiona­l gasolinepo­wered cars.

At the opening of the event, which drew nearly 250,000 online viewers, Musk walked on stage in a black T-shirt and jeans as about 250 shareholde­rs — each sitting in a Tesla Model 3 in the company parking lot — honked their car horns in approval.

Ahead of the event, Tesla shares closed on Tuesday at $424.23, down 5.6% after Musk tweeted late Monday that the battery improvemen­ts to be unveiled at the event would not reach “serious high-volume production” until 2022. Shares rose 1.5% in afterhours trade.

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 from combustion-engine vehicles.

Analysts expect Tesla to present a range of updates, including significan­t improvemen­ts to the amount of energy its batteries can store, allowing vehicles to drive further on a single charge. They also await updates on the production cost of battery cells, largely seen as an impediment to wider electric vehicle adoption.

Musk in July said scaling battery cell production at an afford

TESLA >> PAGE 8

 ?? SUSAN WALSH — THE ASSOCIATED PRESS ?? Tesla and SpaceX Chief Executive Officer Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington on March 9.
SUSAN WALSH — THE ASSOCIATED PRESS Tesla and SpaceX Chief Executive Officer Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington on March 9.

Newspapers in English

Newspapers from United States