Wednesday 23 September 2020 9:18 am

Musk says $25,000 Tesla 'three years away' as investors wipe off $50bn

Tesla boss Elon Musk said last night that he expects a cheaper, fully autonomous Tesla model to be available “about three years from now”.

However investor reaction to the company’s highly anticipated Battery Day was muted, leading Tesla’s market valuation to fall by around $50bn.

“This has always been our dream to make an affordable electric car,” Musk said, promising a target price of $25,000.

He added that he expects vehicle deliveries — a key metric for Tesla — to rise by about 30 to 40 per cent.

“In 2019, we had 50 per cent growth. And I think we’ll do really pretty well in 2020, probably somewhere between 30 to 40 per cent growth, despite a lot of very difficult circumstances,” the billionaire said.

Tesla revealed new cylindrical cell batteries at the live demonstration, which it claimed will provide five times more energy, six times more power and far greater driving range.

However investors had been hoping for more news on Tesla’s long-promised “million-mile” battery which would last for 10 years or more, and a specific cost reduction target.

“Nothing Musk discussed about batteries is a done deal,” said Roth Capital Partners analyst Craig Irwin. “There was nothing tangible.”

Tesla’s share price dropped as much as seven per cent during the presentation last night.