What’s up: CEO Elon Musk has made some important announcements that could reveal the company’s fantastic summit on Tuesday.
Changes in battery performance, production costs, or Tesla supply chain could be extremely important to the company, given the importance of batteries in the construction and performance of electric vehicles.
“Batteries are the hearts and lungs of Tesla history,” Wedbush Securities analyst Daniel Ives told me.
Ives said Wall Street was looking to Tesla to start producing more battery technology so they could “own more of their ecosystem.”
Watch this space: Musk tried to lower expectations on Monday, writing that “what we are announcing will not reach serious mass production by 2022.”
He added that the company would not cut back on battery purchases from suppliers such as Panasonic and LG, as there could be “significant” battery shortages even when partners go full speed. Tesla shares fell 4% in market trading.
As the competition heats up, Tesla is taking advantage of having a lead, according to Loup Ventures’ Gene Munster. In the first half of 2020, Tesla had about 80% of the electric vehicle market in the US, as well as a market share of 15% in Europe and 20% in China.
But he has a target in his back. GM, which has pledged to spend more than $ 3 billion a year by 2025 to fund electric vehicle research and development, unveiled a competitive battery in March as companies like Volkswagen prepare to flood the market with EVs.
Xi Jinping has a message for China’s private companies
The ruling Chinese Communist Party this month published an unusually candid set of guidelines calling on its members to “train private entrepreneurs to arm their minds with [Xi’s] socialism ideology. “
The private sector needs “politically sensible people”, the directive said, who “will listen to the party and follow the party”.
Why it matters: The message comes as the world’s second-largest economy continues its fragile recovery from the coronavirus pandemic and is debating with the United States about trade and the future of technology. The recovery of China’s independent private companies could help accelerate that recovery, while expanding the control of the most powerful leader the country has seen in decades.
The practical effects of the directive are not yet completely clear. However, the mandate could push private companies to take public positions on important policy or foreign policy issues, such as territorial disputes.
Watch this area: The consequences for leaving the line can be serious. On Tuesday, retired real estate mogul Ren Zhiqiang was jailed for 18 years on corruption charges.
He had previously allegedly criticized Xi for tackling the Koranic pandemic – and his sentence appeared to have been designed to send a message that public criticism or violation of Xi would not be tolerated.
The outlook for the US recovery is getting darker
At its lowest point in April, the Back-to-Normal Index, which consists of 37 economic indicators, estimated that the US economy was operating at about 59% where it was before the epidemic accelerated in early March.
It improved slowly in May and June as Koranic virus cases began to subside, unemployment claims began to fall and some states began to lift business restrictions, according to my CNN Business colleague Annalyn Kurtz.
But after that, the momentum stopped. As Quranic virus cases increased in some places, states declined to open plans. In the last three months, the index shows that the economy is largely sideways. And after reaching a high percentage after the 80% pandemic on Labor Day weekend, it now returns to 76%.
“The Back-to-Normal indicator shows that it is not a V-shaped recovery,” said Mark Zandi, chief economist at Moody’s Analytics. “Six months later, we still have a long way to go before we can return to normal.”
Federal Reserve Chairman Jerome Powell begins three days of testimony before Congress at 10:30 a.m.
- Tesla opens its annual meeting and Battery Day, where CEO Elon Musk is expected to unveil the latest technological developments in the electric car industry at 4:30 p.m. ET.
- Win ( and )Stitch Fix ( Profit reporting. )