The stock of Tesla (TSLA) has been growing by 18% over the last few days, as investors come in just before Battery Day and the important announcements it will bring.
On Wednesday, Tesla announced a 5 for 1 action split that sent the share price rising.
Despite stock splits that do not change the value of a company, they are known to increase temporary stock prices because people expect higher volume from small investors.
Tesla extended its profit yesterday by 4% yesterday and now Tesla’s share (TSLA) share of the morning is up by as much as 3% up.
The automaker is now valued at more than $ 300 billion.
There is no clear catalyst for the increase other than a new note from Morgan Stanley this morning that talks about Tesla launching “a 3rd party battery / EV supply company for power”:
“While there is still room for discovery leading up to the 22nd Battery Day, the idea is getting Tesla not only driving trains and software, but superior battery packs to the auto industry are bringing more and more validation,” according to the Morgan Stanley Asia Tech team . ”
Morgan Stanley increased its price target on Tesla based on this idea, but it increased it to $ 1,360 per share, which is significantly below the current price.
Nevertheless, the company presents Tesla’s Battery Day, which will be held on September 22, as the next big catalyst for Tesla’s stock.
Electrek’s Take
A quick message to TSLA shorts: go out for Battery Day.
And that’s not because Tesla will become a battery supplier as Morgan Stanley suggested.
I do not think it is impossible, but if it happens, it will be years along the way. Late this decade at the earliest in my opinion.
As we reported earlier, the real announcement on Battery Day is Tesla’s Roadrunner project that aims to resolve battery bans and enable Tesla to launch its many upcoming car programs that will become massive battery consumers – namely Tesla Semi and Tesla Cybertruck.
Tesla will explain how it intends to no longer be dependent on third-party manufacturers. The automaker will still need them for the foreseeable future, but it will show a way to support itself with its own battery production.
Furthermore, we also expect some battery performance improvements to be announced at the event, but I think that will actually be second to the scale and cost of batteries that Tesla plans to present at the event.
We also expect to discover Tesla Model S Plaid at the event and there may be a few surprises.
But at the heart of the announcement, and what I expect to be the real catalyst for the supply, Tesla has shown a clear way to scale battery production to solve delivery constraints.
Announcement: I’m long TSLA.
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