Shares of Asian battery suppliers fell on Wednesday after Tesla Inc <TSLA.O> unveiled a plan to halve the cost of its electric vehicle batteries and bring more production of the key auto component in-house. The fortunes of battery makers in South Korea, Japan and China are linked to Tesla, the EV market leader, supplying its factories in Nevada and Shanghai. Tesla CEO Elon Musk on Tuesday outlined a plan at the company's closely watched "Battery Day" to aggressively boost production of its own batteries and cut battery costs as it looks to deliver affordable electric cars.
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.