Do you ever just get a little tired looking at the price action in Tesla (NASDAQ:TSLA)? Apparently CEO Elon Musk did, and he turned to social media to cool things down. Just 24 hours ahead of his high-profile Battery Day event, he issued a warning. Tesla stock took a turn south in response.
But why did shares open down almost 4% on Tuesday? The Tesla Battery Day event still promises to make history, whether through short- or long-term tech announcements.
Investors have long been waiting for Tesla’s Battery Day. The event was initially supposed to take place early in 2020, but the novel coronavirus had other plans. Now, the rescheduled shareholder event has had plenty of time to generate hype. Wall Street — and pretty much every car enthusiast on the planet — is excited to see just what Musk unveils from the Fremont, California factory.
On the back of all that excitement, Musk sent out a cautionary tweet. He warned that any updates the company shared during the Battery Day event would be for the long term. This message came not long after he shared that many exciting things would be unveiled at the event.
Investors are feeling whiplash. Can you blame them?
Important note about Tesla Battery Day unveil tomorrow. This affects long-term production, especially Semi, Cybertruck & Roadster, but what we announce will not reach serious high-volume production until 2022.
— Elon Musk (@elonmusk) September 21, 2020
Providing a bit more context, Musk went on to explain the difficulties in scaling up production and to outline plans to increase battery cell purchases from the likes of Panasonic (OTCMKTS:PCRFY). Investors are likely eyeing the clock, waiting for the event to kick off at 4:30 p.m. ET. Only then will they be able to piece together just what Musk means.
Behind the Slump in Tesla Stock
Before you panic, you have to consider the chances Musk just needs to let a PR person take over his social media. Tesla stock has been on fire since early September, gaining more than 35% in just the last two weeks. The company may also be trying to cool things down in order to leverage more excitement during the actual event.
Investors are expecting Tesla to shed some light on a long-lasting battery, with hopes the company will unveil one that can last a million miles over its lifetime. Tesla does have the lead in electric vehicle battery range, but as the competition heats up, many in the space are looking to see it strengthen its edge. Plus, Wall Street is also looking for updates on cheaper batteries and battery cell production, including through a tour of the California factory.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.