Tesla Slumps As ‘Battery Day’ Timescales Disappoint

After being hyped up by CEO Elon Musk in the run up to it, Tesla’s (TSLA) ‘battery day’ disappointed investors, as the new innovations unveiled remain years away. The firm’s share price closed the day 5.6% down, then slumped further in after-hours trading, after Musk clarified that some of the technologies showcased are “close to working” and require a “a ton of work from here to there.” Key announcements from the day include a hopeful timeline on full self-driving software (versus Musk’s promise last year to have one million autonomous taxis on the road by the end of 2020), Tesla’s plan to handle more of its own battery production, cheaper battery cells, and new production technologies. Musk also revealed that the firm has more than 600,000 reservations for its Cybertruck, and that he anticipates battery advances will allow Tesla to produce a $25,000 vehicle in around three years.

Tesla aside, US markets enjoyed a positive day as COVID winners from the first wave moved back into the spotlight. The major US indices finished higher but failed to lift Asian markets, which were flat. European markets have opened slightly higher with modest gains for the FTSE and Dax.

Meanwhile, the price of gold (GLD) tumbled below $1,900 for the first time since July, trading down at $1,898 this morning. It was hit by a stronger US dollar (UUP) which is trading at two month highs with no stimulus package forthcoming as yet to cap these gains.

Twitter (TWTR), Amazon (AMZN) lead market rally as stocks snap losing streak

Consumer and technology names led a positive day for US stocks, snapping a multi-day losing streak. In the S&P 500, the consumer discretionary sector was the biggest winner with a 3% gain, while the information technology sector was up 1.7% and the communication services sector added 1.9%.

Twitter and Amazon led the index, adding 7.1% and 5.7% respectively. Amazon jumped after an upgraded rating from analysts at Bernstein, who moved the stock up to outperform. Bernstein analyst Mark Shmulik argued that the firm is the primary beneficiary of trends permanently accelerated by the pandemic, including e-commerce, cloud services and digital advertising.

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