Tesla stock volatile ahead of Battery Day
Analysts are looking for a 1M-mile battery
Tesla Inc. shares recovered their early losses Monday as traders looked ahead to the company’s upcoming Battery Day event.
The event, scheduled for Tuesday evening, is expected to showcase the Palo Alto, Calif.-based electric-car maker’s new battery technology, which is speculated to last for 1 million miles.
“We think TSLA is likely to formally unveil a million-mile battery which will further bolster its leadership position in EVs (Teslas = 58% of all EVs sold in the U.S.) and widen the gap between competitors,” wrote CFRA analyst Garrett Nelson.
Tesla CEO Elon Musk recently teased the event would reveal “many exciting things.”
Wall Street analysts expect Tesla to talk about its plans to reduce production costs, increase charging speeds and battery capacity, among other things.
Battery Day has been just one of the catalysts behind the surge in Tesla’s share price this year. The stock rallied 496% this year through Aug 31. as investors priced in a fourth straight quarter of profitability that paved the way for the company’s possible inclusion in the S&P 500.
Shares topped out on Aug. 31, the day they began trading at their 5-for-1 split-adjusted price, and plunged 33% over the next five sessions after the electric-car maker announced a $5 billion stock offering and was passed over for inclusion in the S&P 500.
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The stock had recouped about two-thirds of that decline and was up 428% this year through Friday.