Tesla Battery Day: Look Out for the Devil in the Details, Suggests Analyst

Tesla’s (TSLA) highly anticipated Battery Day is finally upon us and the excitement is palpable on Wall Street.

After market close today, Tesla will host the long-delayed event and looking ahead to the shenanigans, Canaccord analyst Jed Dorsheimer expects there will be “a plenty for everyone.”

Expounding on this, the analyst said, “Bulls are likely to highlight a 1-million-mile battery or perhaps the CO2 light supply deals. Bears will highlight that TSLA promotions typically fail to materialize, a valid concern, and a shift towards more difficult milestones (SEMI, CyberTruck, and competition). Our take? We think the day will be a trove of tangential ways for investors to capitalize on a shifting market for BEVs.”

Dorsheimer expects the announcement of “new anode chemistry.” Adding to last year’s Maxwell acquisition, the analyst anticipates a partnership with a silicon-based solution provider such as Sila Technologies “to gain performance benefits without the swelling.”

Additionally, Dorsheimer expects a number of shrewd supply agreements “on the cathode side of the equation.”

More info on battery management, and clarity over concerns of “LFP (lithium iron phosphate batteries) beyond China” could also be on the agenda. However, concerning the latter, per noises from Tesla’s direction, it appears unlikely and indicates to Dorsheimer that “the company is worried about competition in Europe.”

In conclusion, Dorsheimer signs off by sounding a note of caution and believes the “big question will be on follow through.”

“It's one thing to announce all these breakthroughs, which might be great for momentum algorithms,” the analyst said, “But like most things TSLA, the devil will be in the details, which sadly will take some time to play out.”

So, can the Battery Day event catapult Tesla shares higher?

Dorsheimer believes it's best to stay on the sidelines for now. The analyst reiterated a Hold rating on TSLA along with a $442 price target. Therefore, the analyst expects shares to remain range bound for the foreseeable future. (To watch Dorsheimer’s track record, click here)

Overall, Wall Street is not convinced that Musk's tech empire's reward is worth all the risk, especially when taking note that TipRanks analytics exhibit TSLA as a Hold. With a potential downside of 26%, the stock’s consensus target price stands at $314.27. (See Tesla stock analysis on TipRanks)

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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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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