Elon Musk sure knows how to move the stock market. In fact, his social media presence alone may be the most powerful catalyst on Wall Street. Tesla (NASDAQ:TSLA) has been rallying since Friday on a tweet from the CEO about its upcoming Battery Day.
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Also known as the annual shareholder meeting, Tesla Battery Day is a big deal. The hotly anticipated event will take place exactly a week from today — on Sept. 22. Ahead of that event, Tesla stock is climbing thanks to a teasing message from Musk.
Nine words, one date and a lightning bolt emoji. That was all it took to send Tesla stock to the moon. Shares closed Monday higher by 12.6%, and the rally continues in pre-market trading on Tuesday. Why is this tweet from Musk such a big deal?
Broadly, electric vehicles have been red hot thanks to the novel coronavirus. Many investors see innovative tech, like EVs, as a way to drive out of the pandemic-induced recession. Tesla by far is the leader in the space, and its often charismatic leader has a lot of market sway. Plus, beyond making electric cars, Tesla is also a disruptor in the battery and solar panel niche.
Investors just can’t contain their excitement over the event.
What to Expect From Tesla Battery Day
The first big catalyst for Tesla stock ahead of Battery Day comes from the analyst community. We have already seen the first wave of price-target hikes before the event. UBS analyst Patrick Hummel more than doubled his 12-month target on shares to $325 — admittedly still bellow the current share price. According to the analyst, “a self-reinforcing upwards circle” has continued to drive Tesla stock higher. And despite his hesitations with the company, Hummel admits there will likely be a “significant” announcement at the annual event (subscription required).
As TSLA bulls will likely remember, April 2019 saw a similar investor event at which Musk revealed the chipset for the company’s Autopilot system.
Investors are also simply excited based on their predictions for the event. Tesla has long held records in the electric car space, including for farthest battery driving range. With that in mind, and thanks to the tweet from Musk, many expect the company to announce a battery that can drive 1 million miles over its lifetime. Enthusiasts also expect news about cheaper batteries and a tour of cell production systems at the Fremont, California factory.