Tesla is ‘buy’ ahead of an upcoming battery day, Oppenheimer says

Tesla (TSLA) The stock has taken investors on quite a roller-coaster ride. It is now trading 25% lower this month at $ 372.72 per share, showing a 13% increase from $ 330 a share just a few days ago.

The Tech Boy’s poster boy was hit hardest during the recent recession, and its exclusion from the latest S&P 500 reshuffle has created some degree of sentimentality.

However, Tesla has a big catalyst on the horizon in the shape of the much-awaited Battery Day that takes place on 22 September.

Oppenheimer analyst Colin Russ expects Musk & Co to highlight several points of interest in the upcoming event.

“We look at four key areas of focus: anode and cathode material design, manufacturing process tech, the advantage of battery management systems in powertrain optimization, and its path to solid state batteries, especially its electrolyte development approach. We are looking at its cells. Are also looking forward to the development of TSLA’s core geometry, which is showing wider diameters and does not move to prismatic cells. Last but not least, we have an update on our relationships with cell partners such as Panasonic and CATL Expect, ”the 5-Star analyst noted.

Investors should also know how Tesla plans to acquire Maxwell Technologies, the ultra-capacitor manufacturer and battery technology company Tesla, in 2019. CEO Elon Musk has already suggested that Maxwell will have a major impact on the battery, yet it is still unclear how the company fits into the Tesla game plan. Roush expects “meaningful expansion on how TSLA will deploy the technology.”

All in all, Roush rated TSLA an outperform (ie buy) while maintaining a $ 451 price target. This figure represents a potential increase of 21% from current levels. (To see Rush’s track record, Click here)

Roush is currently in a minority on Wall Street. The majority takes a more cautious approach. Based on 5 Buys, 15 Holds and 10 Sells, the analyst consensus rating on TSLA is a hold. In the coming months, Street expects shares to lose 22%, given an average price target of $ 293.67. (See TSLA Stock Analysis on TSRANS)

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Disclaimer: The opinions expressed in this article are purely selective analysts. Content is to be used for informational purposes only. It is very important to do your own analysis before making any investment.