Tesla (TSLA) Battery Day could be Master Plan Part 3

This morning, Tesla (NASDAQ: TSLA) issued a set of higher price targets from Wall Street firms. The price target boosts were both focused on the possibilities that could come from Tesla’s upcoming Battery Day event, where the electric car manufacturer would outline their plan for cell development. One firm said Battery Day could be “Master Plan Part 3.”

Emmanuel Rosner, an analyst at Deutsche Bank. Rosner raised his forecast from $300 to $400 for the stock of the electric car manufacturer by 33 percent.

Rosner said Tesla has the ability to unveil a “a new insourced manufacturing system” that aims to increase the battery size. In addition, new cell chemistry could be introduced to the world at the event that would improve the efficiency and durability of the company’s batteries as well.

Battery Day may also see Tesla implementing a system where cell costs would be “fast-declining” thanks to an improved and more productive method of production. “While media and investors’ expectations for the event are high, we believe these announcements could meet many of them, and reinforce Tesla’s position as a technology leader,” Rosner said to investors.

Continued loyalty and sponsorship often drive market capitalization for Tesla, Rosner believes. “We believe investor ongoing enthusiasm for EV plays and the expected confirmation of ongoing technology lead by Tesla, could continue to support its high valuation.”

Tesla got another higher price target from Credit Suisse which was also focused on the Battery Day potential developments. The company’s analysts said the event will be “Master Plan Part 3,” making Tesla’s leadership in the industry even more important.

Credit Suisse says Tesla’s two-TWh long-term battery capacity, more than thirty times its current capacity, will drive growth in its automotive and stationary energy storage sectors. In the future, it could also see Tesla become a mainstream supplier to other automakers.

The increase in cell capacity in the automotive sector could help the electric car maker produce 20 million vehicles a year. This will make Tesla the largest automaker in the world over Toyota, which produces 10 million automobiles a year. The increase in its car production will also be 40 times what Tesla currently produces, which is about half a million vehicles every twelve months.

Tesla shares have recovered a big chunk of what they lost last week as a result of a large-scale selling of tech stocks the company encountered a significant pullback. Last Tuesday, which was the worst trading day in its history, Tesla lost 21 percent of its value. But last week was strong for Tesla, as shares traded at around $453 during the early hours of Wednesday’s session, up $120 from last Tuesday’s low point.

Battery Day is scheduled for Tuesday, September 22nd.

Source: MarketWatch and SeekingAlpha

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