Samsung Shares Take $580M Dive After One Elon Musk Tweet
As we noted yesterday, Samsung is focusing on batteries for electric vehicles. There were even rumors that Samsung was going to be making batteries for Tesla. Turns out, this wasn't true, as one devastating Tweet from Elon Musk made clear.
Why was this devastating? Well, Samsung shares dropped eight percent - or $580 million in total value - after the Tweet went out. Tesla has long used Panasonic cells in its electric vehicles (but the Panasonic partnership was not exclusive), and is partnering with the battery company on the upcoming Gigafactory. As you might suspect, the value of Panasonic shares went up about three percent after the Tweet.
So, what prompted the rumors that Samsung would be making cells for Tesla EVs? Mostly, the stories that Tesla and Samsung are working together. The stories are true, it seems, but it appears that the cells are for Tesla's home energy business, according to Automotive News.
