The Tesla CEO, Elon Musk is $13 billion richer as investors anticipate crucial announcement regarding the company’s proposed “Battery Day” The event scheduled for September 22 is expected to reveal progress made by the company regarding the capacity of battery used in its automobile. If the anticipated revelation is what could make the company more profitable, analysts say that the company’s stock would move even higher.
In a tweet on September 11, Musk wrote that exciting things will be announced on the Battery Day, causing speculations among market watchers and investors on what the features of the new battery could be.
Between September 11 and 18, the company’s stock has risen by 19% nearly erasing the losses of the September 8 decline of 21%, when Tesla failed to make the S&P 500 Index listing.
Daniel Ives, an analyst of Wedbush said that announcing breakthroughs such as a battery that reduces the company’s cost of production could be a game-changer for investors. Morgan Stanley’s analyst Adam Jonas said that a jump in battery capacity or the million-mile battery would excite investors even more leading to higher value for the company.
Good Prospects for Tesla
On Friday, Tesla stock continued to appreciate closing the day 5% higher. Ives said that the numbers are looking good for the company, positing that it is expected to sell more cars in China where sales are expected to go up with the Chinese market making up 40% of the brand’s sales by 2022.
Tesla is not the only electric auto maker making gains, its Chinese competitor, BYD’s stock has gone up 35% this week, adding $2.3 billion to the net worth of co-founder, Wang Chuanfu. BYD has made headlines since January after the company released its cheaper cobalt-free battery. It further released its first sedan in July and by August had won a contract to supply California with electric buses.