Tesla (NASDAQ: TSLA) will have to demonstrate “something big” on September 22nd at its Battery Day event says Jim Cramer. Otherwise there would be a possible overhang similar to what occurred after the recent exclusion of the company from the S&P 500.
Cramer says investors who have put cash into the stock of the electric car manufacturer want to see advances in technology and not a new vehicle. “They want to see the million-mile battery. They want to know that it’s a technology vehicle that takes you to different places,” Cramer said to The Street. “Something that Elon has been fixated on forever is the notion of energy: What a car can run on and how far it can run.”
Tesla’s hopes for Battery Day have been unreal, with reports spreading to the company from the million-mile battery declaring it will become a full-fledged cell supplier to other car companies.
The reports and hopes for the case didn’t turn out in favor of Tesla, Cramer suggests. “The bar has gotten very high.”
In recent years, Tesla has made so many advancements in its technology that investors have come to expect incredible improvements in the infrastructure of the business. Although reports of what Tesla might unveil during the event continue to circulate, there is still no real concrete proof of what the company will reveal on September 22nd.
The speculation means that Tesla must show something revolutionary, or Cramer thinks there might be an overhang close to what resulted from the exclusion of the company from the S&P 500.
“If he does not show something that indicates that he’s got a battery that is game-changing, then we’re going to suffer from the same overhang that we had when Tesla was supposed to be added to the S&P 500,” Cramer continued.
The stock of the company took a major hit after the announcement that Tesla would not be added to the index. The company experienced its worst trading day in the history of the company on Tuesday, September 8th, losing almost 21 percent of its overall value in one day.
TSLA stock, however, has recovered reasonably well and is almost 9% higher. The firm’s stock was valued at $405.46 at the time of publication.
Cramer claims that one thing to expect from investors who stockpile TSLA stock ahead of Battery Day is that. “You better hope for something big if you’re buying it for Battery Day,” he said.
Tesla CEO Elon Musk said the company would unveil “many exciting things” during the event on September 11th. However, nobody except for Tesla’s most valuable names know what exactly will happen during the event. Until then, investors and enthusiasts must wait patiently.
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