What is Tesla Battery Day and Why it’s Important for Investors and Traders at the Same Time?

Tesla’s Battery Day is just days away from today as investors and analysts are eyeing on the event which is being highly-anticipated and highlighted as Insane. 

The EV giant, Tesla, Inc. (TSLA) is all set to go live on September 22, right after the annual general meeting scheduled at 1:30 P.M. PT. The highly-anticipated event is already being perceived as a major milestone for the company. 

The analysts and investors are among the major stakeholders that are keenly observing what is Tesla up to and what are Elon’s future objectives. The expectations are high as Elon Musk himself has mentioned on various occasions that many exciting things will be unveiled on the battery day. Elon in a tweet stated, “it will be very insane.”

Most of the analysts and experts are expecting the EV car company to make a bullish move after the Batter Day presentation. Piper Sandler analyst Alex Potter the second-most bullish on the street, is estimating the stock price to target $515 from $480. Alex is eyeing a more upbeat picture on Tesla Energy and its CEO Elon Musk’s stock-based compensation package. Among other analysts, Global Equities Research estimates an $800 target, while Jefferies’ Philippe Houchois is predicting a $500 target. 

Potter also highlighted that Tesla’s energy business to eventually exceed $200 billion a year in revenue. 

Tesla is one of the most invested companies in the recent time. The company’s future is based on technology and the EV industry set to be the new face of future cars. Tesla shares have continuously grown with the passage of time and at the moment TSLA was trading at $449.96 as of 3:49 P.M. EDT, September 18. 

Morgan Stanley’s auto analyst Adman Jones has been observing updates on Tesla’s battery manufacturing and production efficiency in detail. Adam said:

“We expect the event to be potentially narrative changing for Tesla and the battery market.”

The event has already been so hyped that a small innovation will not have a big impact on Tesla. This event is a big deal for stock and gain investors’ trust for long-term growth. 

After the battery day, the opinion of investors would take a new shape based on what Musk has to offer about the future of electric vehicles and Tesla’s technological lead. The main topics in focus for investors include battery cost, battery capacity, and battery reliability. Moreover, new additions to the battery portfolio are also in discussion and investors can also get to know about Tesla’s stationary power, which includes Tesla Powerwall business

Dan Levy from Credit Suisse expects that Tesla’s event will focus more on cost reduction, potentially offering $7 per kW-hour. Cost reduction is a major aspect that can help in increasing sales at lower price points and increase revenue. 

Whereas, Wedbush analyst, Dan Ives believes that a million-mile battery will be ‘front and center’ on Battery Day. However, capacity is a key feature that matters a lot. Currently, Tesla has enough battery capacity to accommodate the production of almost 600,000 to 700,000 vehicles a year. The company will have to meet up capacity demands in order to obtain the projected growth targets. 

Investors want to know more about Tesla’s production capacity and will it be able to complete the production of 2 million cars by 2025. This stat shows 3 times increase in battery capacity in the next four years period. 

Tesla, Inc. (TSLA) shares have soared more than 400% year-to-date, showing strong progress compared to returns of the Dow Jones Industrial Average and S&P 500.

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