Why Tesla Motors Inc (TSLA) Stock Is Down Today?

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Why Tesla Motors Inc (TSLA) Stock Is Down Today?
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The shares of Tesla Motors are trading lower today due the report that StoreDot, an Israeli company is ready to compete with the electric car manufacturer in the battery market.

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The stock price of Tesla Motors fell more than 3% to $222.44 per share at the time of this writing around 11:19 AM in New York.

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StoreDot could challengeTesla Motors in the battery market

According to the Daily Mail, StoreDot’s battery technology could challenge Tesla Motors. The Israeli company developed a battery that can charge a smartphone in a few seconds and an electric car in minutes.

StoreDot is using a nano-technology to synthesize artificial molecules capable of absorbing and storing energy. The Israeli company developed a battery like a super-dense sponge that can charge and store energy quickly.

Doron Myersdorf, founder and CEO of StoreDot said, “These are new materials, they have never been developed before.

StoreDot already presented a bulky prototype battery for a smartphone. The company is expected make a slimmer version of the battery, which will be available in the market by 2016. The smartphone battery is expected to be fully charged in just 30 seconds and could provide 24-hour power.

The company raised $117 million in funding and plans to use the money to develop a battery for electric cars. According to StoreDot, one of its immediate objectives is to develop the “first every instantly-charging car prototype.”  The company also plans to develop a powerful new charging station and establish a new fast-charging standard.

Tesla Motors is currently leading the electric vehicle (EV) and energy store space. The American electric car manufacturer recently introduced Tesla Energy, its power cell segment, which is considered a primary income driver over the long-terms.

Tesla Energy already received 100,000 orders worth approximately $1 billion. Tesla Motors is currently building a Gigafactory to produce batteries for its electric cars, Powerwall and Powerpack units.

Market observers suggest that Tesla needs to work faster to develop solutions for to improve the energy density and lifespan of its batteries to remain competitive and keep its leading position in the battery market.

According to them, StoreDot could become a tough competitor for Tesla Motors in the energy storage business.

Tesla Motors’ autopilot firmware manager joins Apple

Separately, Jamie Carlson, a former autopilot firmware manager at Tesla Motors left the electric car manufacturer to join Apple. Based on Carlson’s LinkedIn profile, he is now working on special projects at the Cupertino-based tech giant. Previous reports indicated that Apple is developing an electric car under a project called “Titan.”

Apple and Tesla Motors have been in a head-to-head competition in recruiting talents.

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Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
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8 COMMENTS

  1. I attacked the author’s proposal that TSLA is down because of some untested battery tech in Israel – it is factually and vastly incorrect and your defense of it shows your lack of knowledge about the market.

  2. And TSLA bears react to absolutely everything as if it is PROOF that Tesla is destined to fail. Even with a ridiculous new possibility of a new battery technology. You’d think they’d be knowledgeable enough to know that Tesla is not married to any battery and can fill its car with whichever battery is best, including this one. That’s if it even exists. Tesla asks for anyone with new battery technology to send them a battery to test. Considering they are soon to be the largest battery buyer in the entire world then someone making batteries would want to get their business. They are already one of the premiere buyers on the planet.
    You only have to look at the news to see, on any given day, an article about how another manufacturer is building a car that will take down the Model S. Is there a rival car out there? No. Is there a rival car due out in the next few years? No. Is Tesla constantly improving their car and its technology daily? Yes. You’d think that these mysterious rivals potentially built by companies with billions at their disposal could build something, anything similar. Nope. Tesla even says they want a rival and hands their competitors their patents and says to them “please copy us.” Anything remotely similar showing up? Nope. It’s understandable that they aren’t trying but every delay continues to give Tesla an advantage in the marketplace and solidifies them as a strong contender. The biggest rival to Tesla is Tesla. They are small and growing at an astounding and dangerous rate. So far they are doing well.
    Most bears just ignore reality and focus on history. They also make negative stuff up just to try and create FUD.

  3. Wow – the tsla bulls are a touchy bunch – and no manners either – time and time again, when a threat is described, they react like a bunch of insecure 15-year olds with little sense for mannerism or decency – next time, commentators, please spare us the visual pollution of you platitudes, or move back to the caves you came from to teach yourselves some manners – re tsla, it is clear that tsla is working with off-the-shelf technologies, and has (or had) no IP position to speak of – no reason to believe that tsla will have – or seek – a protectable advantage in the future.

  4. This is pathetic. Tesla was down because the whole market is down. Wake up. I don’t even see an authors name – So my recommendation is to fire anyone who wrote an article for “ValueWalk” yesterday.

  5. Here is an article that mentions the same info about Storedot in June (http://www.digitaltrends.com/cars/storedot-ev-battery-charges-in-5-minutes-pictures-specs/). So you are saying investors just realized today that Storedot is a threat to Tesla motors and that is the reason for the downturn. Stocks have crashed across the board typical of a economic downturn. There have been multiple news articles pointing out there is better battery technology out there for EVs then lithium ion batteries. I am pretty certain Musk’s goals all along were to stimulate growth of EV cars. Have you ever considered that if there was a PROVEN improvement to car battery technology that Tesla would buy it up?

  6. lol you idiots really think some startup in israel is responsible for a 15% drop in tsla stock price? have you considered that the dow is down 2-3k points in the last three trading sessions?

  7. It’s ridiculous saying that the stock is down NOW, in a STOCK MARKET WIDE PLUNGE, because of technology that is *at least* several years away, and is not in ANY customers’ hands, in ANY form.

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