Tesla Inc. unveiled battery innovations and efficiency improvements that appeared to overwhelm investors late Tuesday on their much-anticipated "battery day".
Elon Musk, who had gained more than 4% after an optimistic presentation after the AGM, turned south as soon as CEO Elon Musk said that some of the innovations presented at the event were "close to work" and about three years before Realization stood.
Shares fell 6.8% recently in the extended session.
"It works, but not at a high yield [yet]," Musk said, adding that Tesla has set up a pilot battery facility in Fremont, California to meet the challenges and "ramp up" production.
There's "a clear path to success, but a lot of work from here to there," said Musk.
Long-term investors plan their plans for a year, and a three-year horizon is "just a long time," said Gene Munster of Loup Ventures. "Everything they talked about had substance," said Munster. "But investors wanted immediately."
The "real takeaway" of the day was that Tesla is aiming for full vertical integration that would keep it one step ahead of the rest of the industry, Münster said.
Keeping everything in-house, from mining interests to battery design and manufacture, is "a flywheel that's hard to catch," he said. This would lead to cost reductions, lower prices and, ultimately, higher demand for Tesla vehicles, Münster said.
Musk had already tried to quell Wall Street's high expectations for the event on Monday, tweeting that some of the technologies to be revealed "won't reach serious mass production until 2022".
The stock closed more than 5% lower in Tuesday's regular trading session.
Tesla set out to completely rethink the way cells are manufactured and designed, said Musk, executive director of Tesla, SpaceX, and Drew Baglino, senior vice president of power engineering at Tesla, as they took the stage shortly after the annual general meeting closed.
It was a partial presentation, a partial chemistry lesson, as the two took turns praising Tesla's progress in making cheaper, more efficient batteries.
Innovations included changes in battery size and silicon technology, plans for easier access to lithium, recycling of batteries, and better integration between the battery cell and vehicle. The combined changes would lead to improvements in range and battery prices.
Tesla stock had gained in the off-hours session during the day's AGM, largely thanks to Musk's statement that it was "promising" that the Silicon Valley automaker would post an annual profit and stay in its previous vehicle-2020 delivery targets, while the promise of an expanded version of Autopilot, the company's suite of advanced driver assistance systems, is promised "in about a month".
Unfamiliar with lofty goals, Musk also announced plans for a fully autonomous electric vehicle valued at $ 25,000 within three years.
Musk called the year "insanely tough" – the toughest for Tesla, he said.
The Annual General Meeting and Battery Day were held outdoors in Fremont due to pandemic assembly restrictions.
The few local shareholders sat in their drive-in-style Tesla cars and honked the horn occasionally to signal enthusiasm. The general meeting was postponed from July.
Tesla stocks are up 407% so far this year, while the S&P 500 index is up just 2.6%