Tesla shares (NASDAQ: TSLA) are down on Wednesday after Elon Musk said cheaper and more powerful batteries wouldn’t be available for another three years.
During a live presentation given on Tuesday, hinted towards a cheaper Tesla becoming available which would have five times more energy and six times more power.
Speaking at the event, Musk said the new technology would take three years to implement. Investors did not react well to the news and $50bn was wiped off its stock market value.
“In three years… we can do a $25,000 car that will be basically on par [with], maybe slight better than a comparable gasoline car,” he told his audience.
Casper Rawles, head of price assessments at Benchmark Mineral Intelligence, said that the move would be “challenging”.
“Even with really experienced car manufacturers, we tend to see a very high scrap rate of production in the first couple of years. You can only reduce the cost down to a point,” said Rawles.
Tesla is currently the most valuable car company in the world and its share price has soared over the past four quarters.
Tesla shares closed 5.6% lower and fell another 6.9% in after-hours trading on Tuesday.
The share price (NASDAQ: TSLA) is currently trading -7.32% at 393,16 (1642GMT).
