Will battery day results be good news for Tesla?

Battery Day

Investors who are still sticking with Elon Musk’s groundbreaking electric car company, or just now getting interested in Tesla’s stock, are hoping the firm gets a boost from its upcoming ‘battery day’ event tomorrow.


Musk is slated to go on record providing information on progress with Tesla’s battery lineup.


This is critically important because of the utility of the battery in Tesla cars, and other aspects of the company’s popularity in consumer markets.


For background, Tesla rocketed from around $500 per share to over $2200 per share earlier this year. The management enacted a 5 to 1 split, and then the stock contracted to lose a third of its value.


Most recently, Tesla is up about 1.4% today, inching back toward the $500 mark, and investors are hoping that Musk unveils some significant information on “million mile battery” technology that might propel the stock higher.


Some are bullish on innovation: UBS analyst Patrick Hummel, quoted in recent Reuters coverage, suggests new dry electrode cell technology could help speed manufacturing and lower costs for battery production.


Analysts provide a more nuanced picture.


“Eight Wall Street analysts recommend buying Tesla’s stock, while 10 recommend selling and another 15 are neutral. The median average price target is $305, which is 31% below Friday’s close,” writes Noel Randewich in contemporary reporting of what TSLA looks like to the pros.


Another bit of information that could springboard Tesla tomorrow is news of more ecologically friendly lithium-ion battery design. Tesla, along with all other purportedly green companies, took a hit in terms of public perception with Michael Moore’s newest movie ‘Planet of the Humans’ this year, in which voices peering deeply into the true environmental picture slammed lithium-ion battery production as dangerous and potentially wasteful.


Short-term, many are expecting some volatility around Tesla. Long-term, quite a few traders are betting that the stock will get back to where it was before the split, and may keep kicking over the stable door and soaring higher in the quarters to come.