Baird Identifies 3 Possible Surprises at Tesla's (TSLA) Upcoming Battery Day

September 17, 2020 7:50 AM EDT
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Baird analyst Ben Kallo reiterated a Neutral rating and $332.00 price target on Tesla (NASDAQ: TSLA) but highlighted the potential opportunity of an upcoming catalyst on September 22nd. The company will be hosting its Annual Shareholder Meeting but in conjunction with this, more importantly, its Virtual Battery Day which offers the possibility of three key catalysts:

  1. Unveiling a new, lower-cost battery cell that could potentially break the <$100/kWh level
  2. Revealing an internal manufacturing strategy to significantly ramp production capacity.
  3. While less likely, the company could also discuss future revenue streams related to batteries, including stationary energy storage management.

The company currently has a ~$13.5B war chest leading to speculation about capital investment and the great reveal. The analyst stated "Connecting the dots: expect TSLA to unveil a new low-cost (potentially enabling <$100/kWh battery) cell for use in Model 3 and Model Y, potentially produced at Gigafactory Texas. The company has reportedly built a “Tera battery manufacturing facility” near its Fremont plant, where it has developed a cell with 2x the diameter as the current 2170 cells used in the Model 3 and Model Y vehicles. Recent patent activity includes a new NCA electrode which is expected to enable a similar/better energy density to NMC batteries, and tabless electrodes, which is expected to improve manufacturing efficiency and is a “way bigger deal than it sounds,” according to Musk.

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $427.00 yesterday.

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Robert W Baird, Tesla, Ben Kallo, Model 3