Impacts of the Battery Day
https://www.cnet.com/roadshow/news/tesla-battery-day-model-s-plaid-cybertruck-elon-musk/
On September 22nd, a big change in the stock market was made after what is called the “Battery Day”. It was a mind-blowing event in which Elon Musk, the CEO of Tesla, made several announcements about the company’s future plans and moves. First, he announced to manufacture their own new “tabless” batteries that could improve power and increase the range by 16%. By doing so, he is trying to reduce the cost and bring the sale price to be similar to those of gasoline cars. He predicted his goal of making the price to be $25,000 would be possible in three years. These announcements imply that they would cut the battery price by more than half and thus affecting the battery companies. As one of the main battery suppliers to Tesla, LG chem has faced a large impact after the event. Its stock price has dropped from ₩660,000 to ₩607,000, which is approximately an 8% drop.
Secondly, Musk has revealed its long-awaited Model S Plaid. It would be available in 2021 with impressive functions. Also, they declared that they are working on to unlock the cars’ Autopilot technology and mentioned a private beta test that would be available in months. From these announcements about Model S Plaid and full self-driving beta, some autonomous driving-related companies were able to receive positive influences. For example, an AVN specialized company expanding to the In-Vehicle Infotainment (IVI) area called the Mortex has made a huge rise in the stock price. Originally from ₩4,470, it has increased up to ₩7,220, which is approximately a 61% rise. The reason for such a rise could be contributed to the systems required for Tesla to develop fully self-driving cars. The Advanced driver-assistance systems, which are electronic systems that assist drivers in driving and parking, and The Head-up display, a transparent display that presents data, are the examples of systems necessary for autonomous driving cars.
The impacts of Battery Day to other markets could portray the networks in the stock market. Although the event itself seems to be about one company, there are companies being affected, which could be the hidden nodes that are connected to Tesla. The type of edges connecting them would widely vary from suppliers to competitors. In addition, they are connected for different reasons and therefore might be influenced in positive or negative ways. In the case of Battery Day, battery suppliers to Tesla as LG chem was negatively affected as it announced to reduce the cost of battery and produce a new type of battery. On the other hand, a company like Motrex was positively influenced by Tesla’s goal for producing self-driving cars as it would require systems from autonomous vehicles companies. By analyzing the impacts of Battery day, the networks present in the stock market were found, and how they affect the stock prices was comprehended.