The Nasdaq composite index used most of Wednesday in the pink, but matters genuinely began melting down all around 1:30 p.m. EDT, and the index closed the working day down 3%.
Electric auto (EV) shares struggling some of the best hurt, with Chinese EV business Kandi Technologies (NASDAQ:KNDI) crashing 9.6% and Spartan Electricity Acquisition (NYSE:SPAQ), which aims to convey Fisker public, slipping 10.6%. Kensington Cash Acquisition (NYSE:KCAC), which will choose the Monthly bill Gates-backed lithium-battery maker QuantumScape community in a reverse-merger IPO, collapsed 11.8%.
Tesla (NASDAQ:TSLA) may have had a function in all this. For months, the firm has hyped its Battery Working day function as the platform to announce transformative enhancements in the technological know-how of EV batteries, including, perhaps, a considerably-touted “million-mile battery.” As it turned out, however, when Battery Working day rolled about very last night, most of Tesla’s promises concerned incremental battery enhancements (alongside with the resulting value and variety improvements for EVs) that are up to 10 several years in the future.
Some of Tesla’s revelations ended up pretty intriguing: Elon Musk’s observation, for example, that there is more than enough lithium less than the Point out of Nevada on your own to switch every single one of America’s 300 million fuel-guzzling automobiles with an EV, which looks to set the lie to the idea that you will find a deficit of lithium in the entire world right now.
I also liked Musk’s step-by-step tutorial in how rechargeable batteries are made — and how Tesla has rethought the process to invent a manufacturer-new battery that’s possibly shorter and stubbier than the batteries we have all come to know and really like, but radically far more successful and impressive, and more affordable to deliver. That bodes perfectly for Tesla taking its modern operate of lucrative earnings quarters (now at 4 in a row) and extending them even more into the long term.
However, it would seem most buyers were being hoping for some thing much more from the Tesla CEO. When they didn’t get it, they began a sell-off that drove Tesla stock down much more than 10% by day’s stop, having the relaxation of the EV market with it.