Ahead of Tesla’s (TSLA) hotly-anticipated Battery Day Event today, CEO Elon Musk has taken to the Twittersphere to shed some light on what the day’s announcements will entail.
“Important note about Tesla Battery Day unveil tomorrow. This affects long-term production, especially Semi, Cybertruck & Roadster, but what we announce will not reach serious high-volume production until 2022” Musk tweeted late Monday evening.
“We intend to increase, not reduce battery cell purchases from Panasonic, LG & CATL (possibly other partners too). However, even with our cell suppliers going at maximum speed, we still foresee significant shortages in 2022 & beyond unless we also take action ourselves” the controversial CEO added.
Shares in Tesla dropped 6% in Monday’s after-hours trading, after climbing 2% during the day. Nonetheless shares have exploded over 400% year-to-date, and as a result the stock scores a cautious Hold consensus from the Street. Most worryingly, the average analyst price target indicates 30% downside potential from current levels.
Five-star analyst Daniel Ives at Wedbush last week ramped up the stock’s price target to $475 from $380, but reiterated his Hold rating on the electric vehicle maker. He expects Tesla to announce a number of new potential “game changing” battery developments at today’s event.
“We believe the company is getting closer to announcing the million mile battery at this highly anticipated event,” Ives told investors. “In our opinion this battery technology will be very advanced, potentially last for decades, withstand all types of weather/terrain, and be another major milestone for the Tesla ecosystem.”
“Another linchpin to Tesla’s battery innovations and the Street’s focus of the upcoming Battery Day will be reducing battery production costs on a trajectory to the key $100/kWh threshold as this would give Tesla much more financial flexibility around pricing on current and future EV models with price parity,” he added. (See Tesla’s stock analysis on TipRanks)
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