Shares in two battery suppliers to Tesla, South Korea's LG Chem and Japan's Panasonic, fell on Wednesday after the electric car maker unveiled plans to cut costs and produce its own batteries. LG Chem was trading down 3.1%, after initially opening higher, while Panasonic fell 4%. Tesla CEO Elon on Tuesday outlined plans for aggressive cuts in manufacturing costs, although the automaker's shares tumbled as Musk forecast the change could take three years or more.
Renewed lockdown fears sent oil prices down on Monday, but markets recovered on Tuesday on hopes that the localized nature of the second wave won't hurt demand recovery
Tesla Chief Executive Elon Musk warned on Tuesday about the difficulties of speeding up production as an expert cautioned the carmaker's increased reliance on large-scale aluminium parts could bring new manufacturing challenges. While carmakers such as Mercedes-Benz have said automation has limitations, Musk has pressed on with plans to create a hyper-automated factory, which he refers to as the "alien dreadnought", or "the machine that builds the machine". Musk's warning comes ahead of a "battery day" later on Tuesday, when Tesla is expected to unveil steps to boost battery production.