Tesla shares tumble following Musk comments on upcoming Battery Day

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Tesla CEO Elon Musk
Screenshot from video of Tesla's 2019 annual shareholder meeting

Tesla (NASDAQ: TSLA) shares plummeted Tuesday after the company CEO Elon Musk announced that the upcoming Battery Day would bring unwelcome news.

TSLA shares dipped by more than 5% to $423.23 each. The stock dived further after hours. At the time of this writing around 7:23 p.m. EDT, the stock was trading around $392.83 per share, down almost 7%.

Musk says an update on Tesla battery will affect its long-term vehicle production

Mainly, Wall Street analysts and investors are waiting for Musk’s update regarding Tesla’s new battery, which the company previously announced. The market is hoping that it would give Tesla an edge over its competitors in the electric vehicle space.

Musk halted such optimism, saying in a tweet “Important note about Tesla Battery Day unveil tomorrow,” adding that it “affects long-term production, especially Semi, Cybertruck & Roadster, but what we announce will not reach serious high-volume production until 2022.”

The outspoken CEO made it clear that Tesla would work to acquire additional battery cells from various suppliers including LG, CATL, and Panasonic. That said, he cautioned any enthusiasm, saying “we still foresee significant shortages in 2022 & beyond unless we also take action ourselves.”