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Tesla Battery Day vs. Volkswagen Power Day: How Wall Street reacted

(Credit: Herbert Diess/LinkedIn)

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Tesla’s Battery Day and Volkswagen’s Power Day were two similar events that showed how the two automakers plan to combat electric vehicle prices within the next few years. Despite the similarities in the events, Wall Street reacted quite differently to both, with Tesla (NASDAQ: TSLA) seeing a minimal effect on its stock in the days following. However, Volkswagen’s stock (OTCMKTS: VWAGY) is soaring over 12% on the day after the event.

Tesla Battery Day

Tesla’s Battery Day was a marquee event for the electric automaker. While the previous year’s focus was Autonomy, 2020 saw battery cells as Tesla’s main concentration. During the event, CEO Elon Musk revealed how Tesla would combat battery prices by continuing to source cells from third-party suppliers, but also by developing its own 4680 cells that are produced by the company in-house. Additionally, new structural battery packs are being used to house the cells and also provide a more robust crash response in the event of an accident. The rigidity of the new structural battery intends to take Tesla’s safety ratings through the roof, where they already reside.

Tesla also revealed plans for a $25,000 car, a blueprint to manufacture 20 million cars per year, and a roadmap to massive cuts in battery cell production costs.

LIVE BLOG: Tesla Battery Day and Annual Shareholder Meeting 2020 updates

Despite the developments, Tesla didn’t receive a big boost on Wall Street. Interestingly, despite the massive developments and plans that Tesla had revealed during the Battery Day event on September 22nd, 2020, the stock closed at $424.23. The day following saw an 11% drop in the stock, as it closed at $380.36.

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Many didn’t understand the reason for the drop. Tesla bull and investor Jim Cramer, who was at one time bearish on the automaker’s stock, stated that the stock fell simply because Tesla didn’t announce what some were expecting. “They’re just bummed the things they hyped didn’t happen,” Cramer said. “Tesla rolls out a plan to create an electric car for the masses and greeted with a yawn because Musk didn’t roll out a magic battery. This is what happens when you let expectations get out of control.”

Volkswagen Power Day

Volkswagen’s Power Day was, in effect, the German automaker’s version of Tesla’s Battery Day. The company held an event outlining their plans for cell cost reductions, along with plans for six total production plants across Europe. VW also has established several partnerships with European energy companies to roll out an expansive charging infrastructure, among many other developments.

“We aim to reduce the cost and complexity of the battery and at the same time increase its range and performance,” Volkswagen Group Board Member for Technology Thomas Schmall said. “We will use our economies of scale to the benefit of our customers when it comes to the battery too. On average, we will drive down the cost of battery systems to significantly below €100 per kilowatt-hour. This will finally make e-mobility affordable and the dominant drive technology.”

Volkswagen’s Power Day: Six new cell plants, new unified battery cell, charging network partnerships

Volkswagen stock began Monday’s trading session at $28.38. After the developments that VW announced, the stock shot up $1.38, a boost of 4.86%. However, the German company’s stock is enjoying massive gains today, just one day after the big event. After closing at $29.76 yesterday, VW stock has increased another 3.48% at the time of writing, for a total gain of 11.69% as of 2:30 PM EST.

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The differences in the presentations and how Wall Street has responded to them are unknown. However, the sheer size of Volkswagen’s production figures could be the main reason for the increased investor response. While Tesla’s rollout of 500,000 vehicles in 2020 was a company best, Volkswagen delivered 9.3 million vehicles last year. For context, VW has also been around since 1937, while Tesla has only produced a mass-market vehicle since 2017.

Tesla is undoubtedly the leader in electric vehicles. Volkswagen, while still working out software kinks, could be considered second-place by some because of the successful adaptation of the ID. family of vehicles in Europe so far. However, it is still admittedly ironing out some software issues with its MEB platform, and it seems somewhat odd that VW’s stock received such a healthy boost in the day following its Power Day event.

What do you think? What is the reasoning for the substantial difference in Wall Street’s reaction? Let us know in the comments below, or Tweet me directly.

Disclosure: Joey Klender is a TSLA Shareholder.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla adjusts Online Design Studio for easier trade-in process

Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.

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(Credit: Tesla Asia | X)

Tesla has adjusted its Online Design Studio to make for an easier trade-in process, reflecting the details of the exchange for a more accurate reflection of payment terms.

Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.

Trade-ins are usually given by submitting vehicle details, then Tesla sends an email with an offer. Offers are non-negotiable, but do adjust over time, although the latest offer is valid for 30 days.

I traded my ICE vehicle for a Tesla Model Y: here’s how it went

Knowing your new Tesla’s cash price, leasing or loan details, and monthly payment information used to be done by the car buyer. From personal experience, I simply subtracted my trade-in from the cash price of the Tesla Model Y, and I plugged those numbers into the payment calculator.

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Now, Tesla is implementing the trade-in process directly into the Design Studio. It will adjust the price of the car and the different monthly payment methods automatically:

The change is already noticed in a handful of states, including California, but it has not rolled out across the board quite yet. It will be implemented in all of the U.S., as well as Canada, this coming week.

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The trade-in process is very simple, and after you accept your offer, you simply drop your vehicle off during the delivery process. Making this simple change will be greatly appreciated by owners.

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Tesla confirms Robotaxi is heading to five new cities in the U.S.

After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.

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Credit: Tesla

Tesla Robotaxi will hit five new cities in the United States in the coming months, the company confirmed.

After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.

The Robotaxi suite is a ride-hailing service Tesla offers, but the details of it change with each jurisdiction, as regulations vary. For example, in Austin, Tesla can operate the Robotaxi suite without anyone in the driver’s seat, as long as the vehicle does not enter a freeway.

Credit: Tesla

In the Bay Area, a Safety Monitor rides in the driver’s seat, essentially acting as the vehicle operator with Full Self-Driving controlling the car.

The local regulations and how Tesla handles them will continue to be a relevant part of the discussion, especially as the company aims to expand the Robotaxi program to different areas. This has been a primary focus of the company for several months, especially within the United States.

CEO Elon Musk said that Tesla was aiming to launch Robotaxi in Nevada, Arizona, and Florida. However, the company detailed five specific cities where it will launch Robotaxi next during the Annual Shareholder Meeting on Thursday.

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Tesla will launch Robotaxi in Las Vegas, Phoenix, Dallas, Houston, and Miami next, broadening its Service Area for the suite to more major cities across the U.S.

It has said it plans to offer the service to half of the U.S. population by the end of the year, but it does not seem as if it will expand to more than a handful of cities this year, which is still tremendous progress, all things considered.

As far as autonomy is concerned, Tesla has always had lofty expectations and has made some even loftier statements.

At the Shareholder Meeting, Musk said that the company would likely be able to enable vehicle owners to text while the vehicle drives, alleviating them from potentially having some of the responsibility they have behind the wheel.

Tesla says texting and driving capability is coming ‘in a month or two’

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It is not confirmed that Tesla will roll this out in the next few months, but Musk said there is a possibility.

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Tesla launches another new Model Y trim at a bargain price with massive range

It is the second most-affordable Model Y trim level in China, trailing the base Rear-Wheel-Drive and coming in under the All-Wheel-Drive.

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Credit: Tesla

Tesla has launched yet another new Model Y trim level, but this time it is in China, and it is at a bargain price.

It also has an insane range rating.

On Friday, Tesla launched the new Model Y Long Range Rear-Wheel-Drive in China, priced at 288,500 yuan ($40,500), an incredible deal considering it is not a stripped-down version of the vehicle like the Model Y Standard.

It is the second most-affordable Model Y trim level in China, trailing the base Rear-Wheel-Drive and coming in under the All-Wheel-Drive.

The big appeal with this new Model Y trim is obviously its price, but its range rating is also one of the best we’ve seen. Rated at 821 kilometers on the CLTC scale, it converts to 510 miles. It uses a 78.4 kWh CATL battery.

Converted to real-world range, however, that 821-kilometer range rated by the CLTC actually is equivalent to about 357 miles on the EPA scale, which is still a very respectable number and comes in at a higher range than the Long Range All-Wheel-Drive configuration that is available in the U.S.

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Tesla has truly brought a wide variety of Model Y trims to the Chinese market, including a new Model Y L configuration that features a slightly longer wheelbase, as well as additional interior features like extended thigh legrests and captain’s chairs with armrests.

It is unclear whether Tesla will bring a Premium Rear-Wheel-Drive option of the Model Y to the U.S., especially as it has already rolled out four configurations of the all-electric crossover in the market. With the new Standard offerings, Tesla will likely keep its lineup as simple as possible.

However, the company has hinted that there is a slim possibility the Model Y L could come to the U.S. sometime late next year, but CEO Elon Musk said that it is not a guarantee.

Tesla is more concerned with self-driving efforts in the U.S., and despite calls from customers for larger vehicles, it does not seem concerned with making them available, at least not for now.

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