People have been waiting for Tesla Battery Day for several months now. It had to be postponed several times and is now scheduled to take place on the same day as Tesla’s investor day, September 22, 2020.
So, what can we expect to reveal on Tuesday?
Here’s what Elon Musk recently tweeted about “Battery Day.”
The tweet has since received more than 172,000 likes.
If you know Elon and the genius that he is, he is someone who thinks big, people often compare him to the current generation, Steve Jobs and Bill Gates (visionary and innovative).
Tesla’s stock price has increased more than 10 times in recent months, making Elon the fourth richest person in the world. The increase in stock price makes him even more powerful and rich to achieve what he dreams of. (More money and equity in Tesla’s pocket and balance sheet will only make it easier to create better products and healthy finances over time.)
Wedbush analyst Dan Ives raised his price target to Tesla shares to $475 from $380 on Thursday, citing stronger-than-expected deliveries in China.
If you noticed recently, Tesla sold 5 billion shares on the open market? This decision was announced before the sale of shares. The reasons were obvious for raising capital. There was no clear explanation on how the money from the stock sale would be used at Tesla, just wait for next quarter’s results to see the amount and how it was used.
Either way, Elon Musk is more powerful today than ever due to the company’s valuation at nearly $450 billion. He is a very smart man in splitting shares with Apple, ensuring that the company benefits from the upside.
Let’s move on.
Tesla stock price
Let’s take a quick look at Tesla’s stock price today:
First, before that, let’s look at Tesla’s stock price over the last 6 months:
As you can see from the chart above, since the stock split (5 for 1) was announced in late July, the stock has been on fire.
However, after Tesla’s stock split on August 31, although the stock briefly touched 510 levels (down from 440 levels where it began trading after the split), the stock has since consolidated to bottom at $330 per share earlier this month.
As Battery Day approaches, the stock is on the rise again, now trading at just under $450. This again represents more than 30% returns in a month. (considering from the bottom when it hit $330 due to the announcement that Tesla was not included in the S&P 500 index.)
Below is how Tesla shares traded over the peak time frame:
The stock’s performance over the last 6-8 months (since March) is simply insane. If you have owned Tesla stock for a long time now, you must definitely be a rich man 😉
Another thing to note here is Tesla’s P/E ratio, have you looked at that number, it’s a crazy 1137.63. Holy Moly!
It’s crazy and crazy.
People only bet on the future of the company, on its innovative products (such as solar energy, the future of China, German GigaF, autonomous driving) and on Elon Musk, that’s all I can say and comment.
Wedbush said he sees “clear momentum” for Tesla’s sales in China for the rest of the year. The company raised its third quarter deliveries estimate accordingly, at 130,000 vehicles compared to 124,000. The new target would mark an improvement of 34% compared to last year and would allow Tesla to reach 470,000 total deliveries in 2020.
Tesla Battery Day Expectations
Before we continue, be sure to watch the video below from “Rob Maurer.” He is one of the most respected and runs the YouTube channel “Tesla Daily”. He also appeared several times on Jim Cramer’s CNBC show “The Mad Money.”
You can also find it on Podcasts. If you like Tesla and what they do, you need to follow him. I sincerely believe that it is as informative as possible.
Alright, now let’s focus on the Tesla battery expectations of the day and the rumors surrounding it; on what could possibly be revealed Tuesday by Elon and the team.
1. Million Mile Battery – This is probably the biggest and most anticipated announcement that will be revealed on Tuesday. The million mile battery is extremely important because current Tesla batteries can last between 300,000 and 500,000 miles.
In the United States, the average motorist drives about 1,000 miles per month. So if we divide 1,000,000 by 12,000, we can realize that the million mile battery will last about 1,000 miles. 75 years for the average American driver.
Essentially, that’s the equivalent of a lifetime of driving on a single battery. The announcement of a million mile battery is also very important for the Tesla-Semi (Truck) which will need a longer battery life as it will travel many more miles per year than the average motorist.
2. Next, Elon Musk is expected to talk about the highly anticipated and long-awaited Roadrunner Project 2.0 updates.
3. Third, Elon and Team could talk about the Plaid Powertrain and its updates.
4. Perhaps new information on Tesla’s increased range, new charging technologies and upcoming Tesla models? Also watch for updates to the 620 mile range?
According to famous YouTuber Two Bit Da Vinci, the main goal should be to allow Tesla to manufacture its own batteries. Tesla’s battery situation already puts it ahead of its competitors, and everything the company does revolves around batteries.
5. Elon could also talk about Tesla producing its own low-cost EV batteries, which could lower Tesla’s cost of ownership and expand the global market.
6. Vehicle-To-Grid Technology: With this technology in place, Tesla will serve as energy storage units. This would allow Tesla owners to get paid for storing energy and ultimately lead to energy arbitrage.
7. Other possible updates from Tesla during the September 22 event:
-
Automatic Bidding Software Update
-
Tesla Virtual Power Plant Update
-
New battery deployment factories around the world
-
Tesla’s energy growth potential (Vehicle-To-Grid technology)
-
Solar roof update (still great potential!)
-
Update on Future/Current Tesla Business Growth
-
A range of energy storage products
-
Current Terafactories/Gigafactories Updates
8. Elon Musk announced ambitious plans to make Tesla batteries capable of living a second or even third generation life, traveling a million miles. Likely conversion of Gigafactories into Terafactories 30 times larger for active production.
Conclusion
Watch out for the Tesla stock price in the days and weeks to come. The stock could see a huge rise in the days and months to come. Especially if the news is important, then only God predicts the stock price 🙂
You can potentially expect a huge surge in stocks tomorrow and the day after, especially ahead of the Battery Day event.
If you currently own Tesla stock, I would humbly request that you hold on to your shares for the time being. Tesla has always been a volatile stock with huge price rise/fall. Better to continue driving with Tesla, in the long term the stock should be extremely rewarding.
Anyway, to summarize, Tesla is an amazing technology company (please don’t ever call it a car company, it’s not) and continues to hold stocks for the longer term. The only downside I can possibly see is the stock’s P/E metric.
Thanks for reading. Please let me know your thoughts and comments below.
