SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

One tweet from Elon Musk was all it took for $580 million to disappear from Samsung SDI’s market cap

General
By 

Last updated: June 8th, 2016 at 16:13 UTC+02:00

You might have read a report recently about Tesla being close to forming a partnership with Samsung SDI to source battery cells for the Model 3 sedan. If this was true, Samsung SDI would have captured a major chunk of Tesla’s business as the company ramps up production to meet the very impressive demand for its latest electric car. However, that’s not the case, as Tesla CEO Elon Musk clarified through a tweet. That single tweet led to Samsung SDI’s shares sinking more than 8 percent today and subsequently wiping $580 million from the company’s market capitalization.

Musk said in the tweet that Tesla is going to work with Panasonic exclusively for battery cells for the Model 3. While Samsung SDI lost $580 million as a result of this tweet, Panasonic’s shares surged during the same period and it added nearly $800 million to its market cap. There’s an old saying among equity market investors – “Buy the rumor, sell the news” – those who rode the surge on rumors of Samsung SDI getting in business with Tesla would have made a pretty penny if they got out of their positions before Musk sent it all crashing down.

Source General Samsung SDITesla
Load 1 comments

You might also like

Samsung SDI logs best-ever EV battery sales and operating profit in Q2

According to the latest numbers by Yonhap Infomax, Samsung SDI posted its best ever operating income and sales figures in the second quarter. This is all thanks to the robust EV battery sales and the world’s shift to electric vehicles. As per the report, the operating income reached KRW 429 billion (around $330.4 million) during […]

  • By Sagar Naresh
  • 2 weeks ago

Samsung confirms $1.3 billion plan for an EV battery factory in Malaysia

Several reports from earlier today suggest that Samsung is on an investment spree to expand its operations. Aside from the fact that the company plans to build nearly a dozen chip factories in the USA, Samsung just confirmed its new investment strategy for an EV battery manufacturing facility in Malaysia. We heard about Samsung SDI […]

  • By Mihai Matei
  • 3 weeks ago

Samsung confirms it is in talks with Tesla to become a camera supplier

Over the past year or so, we came across a few reports suggesting that Samsung is trying to become a camera supplier for the world’s largest EV (electric vehicle) manufacturer, Tesla. The Korean tech giant finally put an end to speculations today and confirmed that it is, indeed, in talks with Tesla. Samsung Electro-Mechanics says […]

  • By Mihai Matei
  • 1 month ago

Samsung to bolster production of EV batteries for Tesla, BMW

Samsung SDI has reportedly secured Tesla as a client for electric vehicle (EV) batteries. After prototyping 4680-type batteries for Tesla last year, Samsung went ahead and ran a pilot manufacturing line in Cheonan. The test results are in, and according to reports, Samsung is now ready to move on to the next step. The next […]

  • By Mihai Matei
  • 2 months ago

Galaxy Z Flip 4’s batteries get pictured, bring a major upgrade

Months before the launch, information about the Galaxy Z Flip 4 and the Galaxy Z Fold 4, including the design and specifications, was leaked. Now, more proof of the Galaxy Z Flip 4’s battery capacity has surfaced. Going by the new images, the Galaxy Z Flip 4 will be powered by two batteries (made by […]

  • By Asif Iqbal Shaik
  • 2 months ago

Samsung and Stellantis building $2.5 billion EV battery plant in Indiana

Samsung SDI, a division of the Samsung conglomerate, is a leading supplier of batteries for electric vehicles. Its clients for EV batteries include the likes of Hyundai and Rivian. Last year, the company announced a joint venture with Stellantis to make batteries for electric cars across its various brands. Stellantis owns some of the world’s […]

  • By Adnan Farooqui
  • 3 months ago