Talk about acceleration.
UBS put the pedal to the proverbial metal with Tesla (TSLA) - Get Report on Friday, doubling the investment bank's one-year stock-price target on the stock on expectations of sales-margin improvement and market-buzzing news at the electric carmaker’s upcoming "Battery Day" event.
In a note to clients, UBS analyst Patrick Hummel raised his one-year price target on Tesla shares to $325 from $160 on expectations that its upcoming Sept. 22 event will be “significant,” in particular with the reveal of new dry electrode battery cell technology that will fortify Tesla’s “cost and technology lead for several more years.”
Hummel said the dry electrode technology is likely to enable a 50% higher energy density of up to 400 watt hours per kilogram (Wh/kg) versus 260 Wh/kg today, as well as allow “much better longevity” in batteries with “potentially a cobalt-free chemistry.”
The new cell design could also be used in the Tesla’s new Cybertruck and other models, including the Roadster, though Hummel noted that much of those announcements and expectations are “already fully discounted” in the stock price.
Hummel is maintaining a neutral rating on the shares.
Meantime, Bloomberg reported on Friday that Tesla is prepping to ship cars made at its new Shanghai Gigafactory to other markets in Asia, including Singapore, Australia and New Zealand, as well as to Europe, shortening the time that customers need to wait for the new Tesla.
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