Don’t count Tesla (TSLA) out just yet.
Over the last few days, the EV maker fell from a high of $502 to $471 after being snubbed by the S&P 500. Even after posting its fourth consecutive quarter of profitability, Tesla was left out of the index.
“Unclear why [Tesla] was not included in the recent rebalancing cycle, though we do think the stock will be eventually added to the S&P 500, having fulfilled all inclusion criteria,” Baird analyst Ben Kallo said, as quoted by Marketwatch.
However, after pulling back, the stock appears oversold, and could head higher, as Tesla nears its Sept. 22 battery day. Even analysts at UBS just doubled its price target on the stock from $160 to $325. All on expectations battery day announcements could be significant, “cementing Telsa’s cost and technology lead for several more years,” as quoted by MarketWatch.
Anticipation is also high the company will unveil a new battery that could last for up to a million miles before it gives out.
“The million-mile battery could profoundly change the business model of electric vehicle manufacturing, analysts say. It also offers Tesla the means to significantly reduce the cost of making electric vehicles. Plus, the cost of owning its cars also could come down, providing Tesla with a huge competitive advantage,” reports Investor’s Business Daily.
If the day is as exciting as many hope, it could send shares of TSLA back above $500 fast.