Tesla (TSLA) stock has taken investors on quite the roller-coaster ride. It is now trading at $372.72 per share, down 25% this month, which in turn reflects a 13% rise from $330 per share just a few days prior.
The tech rally’s poster boy was hit the hardest during the recent downturn, and its exclusion from the latest S&P 500 reshuffle has soured sentiment somewhat.
However, Tesla has a big catalyst on the horizon, in the shape of the much-anticipated Battery Day, which will take place on September 22.
Oppenheimer analyst Colin Rusch expects Musk and Co. to shine a light on several points of interest at the upcoming event.
“We see four key areas of focus: anode and cathode material design, manufacturing process tech, leverage of the battery management system into powertrain optimization, and its path to solid state batteries, especially its electrolyte development approach. We're also expecting an evolution of TSLA’s main geometry for its cells showing wider diameters and not a move to prismatic cells. Last but not least, we expect an update on its relationships with cell partners like Panasonic and CATL,” the 5-star analyst noted.
Investors should also get a better idea on how Tesla plans to make use of Maxwell Technologies, the ultra-capacitor manufacturer and battery technology company Tesla acquired in 2019. CEO Elon Musk has already suggested Maxwell will have a major impact on batteries, yet it is still unclear how the company fits in to the Tesla game plan. Rusch expects “meaningful detail on how TSLA will deploy the technology.”
All in all, Rusch rates TSLA an Outperform (i.e. Buy), while maintaining a $451 price target. The figure represents possible upside of 21% from current levels. (To watch Rusch’s track record, click here)
Rusch is currently among a minority on Wall Street. The majority take a more cautious approach. Based on 5 Buys, 15 Holds and 10 Sells, the analyst consensus rating on TSLA is a Hold. Over the coming months, the Street expects shares to trend 22% lower, given the $293.67 average price target. (See TSLA stock analysis on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.