A cornerstone of the Tesla story is crumbling as the company’s envisioned battery price advantage is likely to evaporate long before the Tesla’s Gigafactory has gone into full swing. An analyst note by Morgan Stanley says that Chinese battery suppliers may cut vendor prices by 35-40% in 2017, while still making a profit.
On Thursday, shares of electric vehicle battery maker Samsung SDI dropped 4% on the news, while competitor LG Chem was down 1.8%. The Tesla stock was unchanged in after hours trading.
