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Do you remember? The 22nd day of September? Well, for those of you who don't, the day symbolizes the 2020 meeting of Tesla stockholders and the company's 'Battery Day'. To better understand the Tesla holiday, here is a breakdown of what it entails.
Photo: Tesmanian
What is Battery Day?
Considered one of the most exciting events and days for Tesla and it's community each year, Battery Day is the date in which the company meets with its stockholders, as well as give a tour of the cell production in Fremont, California.
This year, the day was postponed to September because of the COVID-19 pandemic. The EV automaker is expected to unveil its latest technological discoveries and improvements to Tesla's battery and powertrain during the event. You can watch the live steam tomorrow, here.
Why is it important?
Back in January, CEO Elon Musk stated that Battery Day will "blow our minds". Word on the street is that the company to announce "game-changing" battery technology, as well as innovations around the Gigafactory and the Fremont facility. These can be considered strong variables in the company's current and future success. Elon Musk will also provide information about all of its models, news about the range, the price point of the vehicles offered, and how the company is reducing cobalt in its battery packs.
The biggest news of the day might be Tesla's breakthrough technology that is in the works. The company is on the verge of a "million-mile" battery that would be so far technologically advanced, it could hold a charge for over a decade.
Tesla may also divulge information regarding how they plan to create more sustainable energy. The company may move forward with Terafactories, which could resolve the battery capacity restraint Elon Musk referred to during the Q4 2019 Earnings Call. This could allow them to scale to terawatt-hours, fulfilling the promise to accelerate the world’s transition to sustainable energy.
How will it impact the stock?
After reading about the event and hearing what Musk has to say, you would think that $TSLA would be on the rise. Goldman Sach's and other analysts are expecting Tesla’s battery day to be a stimulus for the popular stock, but not everyone is expecting the shares to rise because of the event. Jim Cramer of CNBC feels that the event will "disappoint investors". He sees the stock might fall this week, but in the long run, but thinks Elon Musks' vision and track record will have the stock rise in the near future.
Tesla's stock was skyrocketing this year, hitting over $2,200 back in August. On Aug. 31, Tesla split its stock 5-for-1. For those of you who don't know what a stock split is, essentially it is an action that a corporate decides on when a company's board of directors wants to divide the company's outstanding shares into a larger or smaller number of shares. As of today, the stock is sitting around the $450 mark. Despite the split, the stock is still worth the same as it was when it was over $2,000, the split allowed more of the smaller investors and common person to get involved.
Another thing to keep an eye on is whether or not $TSLA will be added to the S&P 500. The company posted its fourth straight quarter of profits, which was the last milestone needed before it could be added to the index. There is a question of whether the profits have quality value. Datatrek co-founder Nicholas Colas pointed out that most of Tesla's profitability was from sales of regulatory credits to other automakers that don't comply with legal requirements for zero-emission vehicle sales.
Photo: The Verge
Battery Day besides, Tesla and Elon Musk are innovative and revolutionary. They are the pioneers and trailblazers of sustainable energy and working to change the world. If you have the disposable income, take a look at the stock, and consider adding it to your portfolio. As for now, I hope you enjoy your "21st night of September". Happy Battery Day, folks! Invest smartly ( I am NOT a financial analyst, just a guy who studied business)
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