People have been waiting for the Tesla Battery Day for many months now. It had to be pushed back a few times and is now scheduled to occur on the same day as Tesla’s Investor day, September 22, 2020.
So, what can we expect to be unveiled on Tuesday?
Here’s what Elon Musk tweeted recently about the “Battery Day”.
The tweet has since got over 172K likes.
If you know Elon and the genius 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 share price has surged more than 10X in recent months making Elon the fourth richest person in the world. The share price increase makes him even more powerful and wealthy to achieve what he dreams of. (More money and equity in Tesla’s pocket and balance sheet will only make it easier for better products and healthy finances over time.)
The Wedbush analyst Dan Ives raised his price target for Tesla shares to $475 from $380 on Thursday, citing stronger-than-expected deliveries in China.
If you noticed recently, Tesla sold 5B worth of stocks in the open market? This move was pre-announced before the stock sale. The reasons were obvious to raise capital. There was no clear explanation of how the stock sale money would be utilized in Tesla, you only have to wait for the next quarter results to see the amount and how it’s been utilized.
Anyways, Elon Musk is more powerful today than ever before because of the company valuation at nearly $450 B. He’s a very smart man in splitting the stock along with Apple making sure the company takes advantage of the run-up.
Tesla Stock Price
Let’s quickly look at the Tesla stock price today:
First, before that, let us look at Tesla’s stock share price for the past 6 months:
As you can notice from the chart above, since the stock split announcement (5-for-1) in late July, the stock’s been on fire.
However, post the Tesla stock split on August 31st, though the stock briefly touched the 510 levels (up from 440 levels where it began trading post-split), the stock has since consolidated hitting the bottom at $330 per share earlier this month.
As the battery day is coming up the stock is back up again trading just shy of $450 dollars now. That’s more than 30% returns again in a month’s time. (considering from the bottom when it hit $330 because of the news that Tesla was not included in the S&P 500 index.)
Below is how Tesla stock has traded over the maximum time frame:
The stock’s move over the past 6-8 months (since march) is nothing but insane. If you own the Tesla stock for a long time now, you must definitely be a rich man 😉
Another thing to note here is the Tesla P/E ratio, did you look at that number, it’s an insane 1137.63. Holy Moly!
That’s insane and crazy.
People are only betting on the future of the company, its innovative products (such as Solar, China’s future, Germany GigaF, Autonomous driving) and Elon Musk is all I can say and comment on.
Wedbush said it sees “clear momentum” for Tesla sales in China through the rest of the year. The firm raised its third-quarter deliveries estimate accordingly, to 130,000 vehicles from 124,000. The new target would mark a 34% improvement from the year-ago period and set Tesla up to reach 470,000 total deliveries in 2020.
Tesla Battery Day Expectations
Before we proceed, make sure to watch the below video from “Rob Maurer””. He is one of the most well respected and runs the YouTube channel “Tesla Daily”. He has also appeared a number of times on Jim Cramer’s “The Mad Money” show on CNBC.
You can also find him on Podcasts. If you love Tesla and what they do, you have to follow him. I genuinely believe he is as informative it can get.
Alright, let’s now concentrate on the Tesla battery day expectations and the rumours around it; on what could possibly be unveiled on Tuesday by Elon and the team.
1. Million-Mile Battery – This one’s probably the biggest and the most expected announcement to be unveiled on Tuesday. The 1 Million-Mile battery is extremely important because current Tesla batteries can last anywhere between 300-500 thousand miles.
The average car person in the US drives around 1,000 miles per month. So if we divide 1,000,000 by 12,000 then we can realize that the 1 million mile battery will last approx. 75 years for the average US driver.
Essentially, that’s an entire lifetime worth of driving on one battery. The million-mile battery announcement is also super important for the Tesla-Semi (Truck) which will need longer battery life since they will drive significantly more miles per year than the average car person.
2. Next up, Elon Musk is expected to talk about the much anticipated and long-awaited Roadrunner Project 2.0 updates.
3. Third, Elon and Team might talk about the Plaid Powertrain and its updates.
4. Possibly new information about Tesla’s increased miles range, new charging technologies, and upcoming Tesla models? Also, watch for a 620-mile range updates?
According to reputed YouTuber Two Bit Da Vinci, the primary focus has to be on Tesla making its own batteries. Tesla’s battery situation already puts it ahead of rivals, and everything the company does revolves around batteries.
5. Elon might also talk about Tesla producing its own low-cost EV Batteries, which could bring down the cost of owning Tesla’s and expanding the global market.
6. Vehicle-To-Grid Technology: With this technology in place, Tesla will act as storage units for energy. It would allow Tesla owners to be paid to store energy and will ultimately lead to the energy arbitrage.
7. Other possible Tesla updates on the September 22nd event:
Auto bidder software update
Tesla’s virtual power plant update
New battery deployment plants around the world
Potential for Tesla’s energy growth (Vehicle-To-Grid tech)
Solar roof update (Big potential again!)
Future/Current growth update of Tesla business
A ramp of energy storage products
Terafactories/Current Gigafactories updates
8. Elon Musk has announced ambitious plans to make Tesla batteries that can potentially live second and even third generation lives as they survive for one million miles. Probable conversion of Gigafactories into Terafactories that are 30 times larger for active production.
Watch out for the Tesla stock price in the coming days and weeks. The stock might see a huge upside in the coming days and months. Especially if the news is big, then god alone predict the stock price 🙂
You can potentially expect a huge stock surge tomorrow and the day after, especially before the Battery day event.
If you currently hold the Tesla stock, I’ll humbly ask you to hold your stocks for now. Tesla’s always been a volatile stock with a huge surge/drop in the prices. Better continue riding with Tesla, over the long term the stock should be extremely rewarding.
Anyways, to sum it up, Tesla is an amazing technology company (please don’t ever call it a car company, it is not) and continue to hold the stock for the longer term. The only downsides that I can possibly see is the stock’s P/E metric.
Thanks for reading. Please let me know your thoughts and comments below.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.