Today is Tesla’s Battery Day

What to Expect

Today is Tesla’s (TSLA) highly anticipated “battery day.” The company already leads the industry with many aspects of its electric vehicle battery technology, but investors are excited about even more technological advancements that could be revealed today. Elon Musk, Tesla’s CEO, recently created additional buzz about the event, tweeting , “Many exciting things will be unveiled on Battery Day 9/22.”

Tesla enthusiasts are hoping to hear about cheaper, longer-lasting batteries. Tesla will likely also discuss its plans to ramp up production capabilities and may talk about the stationary power arm of its business.

Tesla May Unveil Cheaper Batteries

The cost of batteries is a big topic of discussion in the EV sphere. In the past, electric vehicles have been much more costly than their gasoline-powered counterparts, but this is changing. The cost of batteries has dropped by about 75% over the past decade.

Currently, EV battery cells generate energy at a cost of about $100 per kilowatt hour. However, some expect that Tesla could unveil a battery able to generate energy at $75 per kilowatt hour. This would be a significant win for the company and its shareholders because it would allow Tesla to expand and reach more customers with cheaper products.

For what it’s worth, Musk also noted that Tesla will continue to rely on other suppliers. In an after-hours tweet yesterday he said , “We intend to increase, not reduce battery cell purchases from Panasonic, LG & CATL (possibly other partners too). However, even with our cell suppliers going at maximum speed, we still foresee significant shortages in 2022 & beyond unless we also take action ourselves.” In the thread, Musk added that “This affects long-term production, especially Semi, Cybertruck & Roadster, but what we announce will not reach serious high-volume production until 2022.” Investors are hoping for more color on those eleventh-hour tweets today.

Battery Longevity and Production Capacity

Though many investors will have an eye on the cost of Tesla’s batteries, some are hoping the company will unveil improvements to the batteries themselves. Many are discussing the possibility of Tesla launching a “million-mile battery,” which, as its name suggests, would be able to last for one million miles. This would mean batteries would outlast their car bodies, which could create opportunities to recycle batteries and lower costs.

Investors are also eager to see if Tesla will release information about its plans to increase production capacity. The company is currently able to make between 600,000 and 700,000 cars per year, but in order to keep up with projected growth targets, it will need to ramp up its capabilities.

These are just some of the points Tesla may touch on at today’s event. The EV maker’s shares have climbed over 400% year-to-date and many will be eager to see how today’s announcements impact the company’s stock.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.