Will Tesla's Share Price Reach $500 on Battery Day?

In a recent speculative post, it was suggested that Tesla's share price may reach $500 on the day of the battery day event and possibly skyrocket the next day. Let's explore the probabilities and implications of this projection.

The Energy Crisis in Australia and Tesla's Potential Impact

Tesla is quietly making strides in becoming a significant player in the energy sector, especially in Australia, which is currently grappling with a prolonged energy crisis. The primary reason for this energy shortage is the over-reliance on natural gas (lng) and the property boom, rather than nuclear power. A significant 'leap forward' in battery storage could have substantial repercussions for Tesla's energy division, impacting its revenue and profits not only this quarter but also in the future.

Is the Stock Likely to Hit $500?

Currently, the Tesla share price is on a gradual incline, making it seem hopeful that the stock will rebound to reach $500. Many believe this stock could hit this milestone and continue to rise if the event meets or exceeds expectations. Elon Musk, known for his ambitious announcements, has built up tremendous anticipation for the battery day event. This hype has undoubtedly influenced the current share price, but the extent of this impact remains uncertain.

Caution and Risks

The 'yes' answer comes with a caveat. The battery day has been hyped by Musk as a potentially groundbreaking event, where Tesla would reveal something truly revolutionary or at least immensely special. Setting such high expectations can have severe repercussions if the announcements fall short. If the event fails to live up to the fervent anticipation, there is a significant risk that the share price could drop.

The News Catalyst

Despite the risks, many believe that the battery day will act as a powerful catalyst for the stock's price. Positive news or breakthroughs at the event are likely to boost the share price. However, it is crucial for Tesla to deliver something truly remarkable to ensure positive market reactions. The anticipation builds, and the day itself will be headline-grabbing. Whether the outcome is truly amazing or not, it's expected that the marketing around the event will generate substantial interest and potentially drive the stock price upward.

Yours Truly, Tom