Nasdaq
Tesla share price trades lower by over 5%, as many view the Battery Day’s announcements as disappointing. After Elon Musk teased the market promising stunning announcements, it turned out that it was just a hype. In fact, a couple of days before the Battery Day, Musk downplayed the excitement, letting market participants guessing.
Anyway, the event turned out to bring some clarity to Tesla shareholders. Among other things, Musk stated that the Shanghai factory would be scaled up to produce over a million cars a year.
When it comes to batteries, Musk noted that technological improvements are still needed in cell technology in particular. Tesla’s new 80 mm cell comes with some impressive improvements – 6 times the power and 16% more range. However, to many investors, the event turned out to be a disappointment when compared to the expectations.
Tesla reiterated its long term goal of producing over twenty million cars a year. Moreover, it introduced a threshold when it comes to its whishes for the price of an electric vehicle sold by the company – $25k.
The event created a mixed reaction across investors and analysts. Tesla share price sold after hours, but Goldman Sachs raised its target for the company’s stock price from the original $295 to $400 – which is just shy from where the share price is about to open today.
Let us not forget that Tesla is up over 400% this year. However, despite the disappointment brought by the Battery day, Tesla share price looks poised for a move above $500. That is, unless it manages to hold inside the rising channel.
If that is the case, bulls may want to buy the opening today and target a new higher high and beyond. On the flip side, a move below $320 would invalidate the trade.
