Tesla Inc (NASDAQ:TSLA) shares traded higher by as much as 3% premarket Friday after UBS doubled its one-year price target for the stock from $160 to $325 in anticipation of Tesla's battery day announcements Sept. 22.
Why UBS Lifted Its Tesla Forecast: Analyst Patrick Hummel expects improved margins to come from Tesla's battery investor day, according to TheStreet.
In January, Hummel still had a Sell rating on Tesla stock, despite doubling the price target at that time as well.
UBS has a Neutral rating on Tesla.
Dry electrode technology is likely to enable a 50% higher energy density of up to 400 watt hours per kilogram (Wh/kg) compared to 260 Wh/kg in current technology, the analyst reportedly said. This may also allow “much better longevity” in batteries with “potentially a cobalt-free chemistry.”
Tesla is expected to announce a million-mile battery, which could be used for over 1 million miles of driving before degrading enough that it needs to be replaced.
Tesla's battery investor day is set to be streamed live online at 4:30 p.m. EST Sept. 22
TSLA Price Action: Tesla shares were trading 1.12% higher at $375.48 at last check Friday.