Okay, so something is coming up for Tesla. I'd say about 99 of the folks who follow Tesla avidly know that this is coming to some extent, but likely don't know what it means. And this is a catalyst that can change the whole game for Tesla. And don't take my words for it.

Take the Ceo's words for it. Elon Musk said this would blow your mind way back in early 2020.. And folks, if you know what this event is, go ahead and comment below. I'm curious how avidly you guys follow Tesla.

But before we get into this, let me give you a bit of context. So a few days ago, I put out a video about how I felt there wasn't enough evidence for Tesla's balance to be a buy yet and that I'd prefer to take advantage of Tesla if we got a better deal on it. But to summarize that video, we discussed that this new run here was not enough to convince me that a new trend had been established. And frankly, folks, I don't make a habit of buying without a clear new trend because we as traders cannot afford to hold through stagnation.

But anyways, the truth is that in covering Tesla earlier this week, I neglected to mention one big catalyst over the horizon. And again, this is a catalyst that Elon Musk personally said will blow your mind many months ago and reiterate it today. This is a catalyst that can cause another pre-anticipatory run that may put this one to shame. And that catalyst is Battery Day.

What is battery day? Well, battery Day is an event scheduled for September 22nd. Batteries are, of course, a wide scope for Tesla since they literally power every Tesla product. So this is an opportunity for Elon and Tesla to lay out the future of their batteries and create a new picture of what batteries will be looking like moving forward. It's also quite important, as we are now in an Ev race with many different companies attempting to tackle the same problems as Tesla and with these competitors encroaching.

Okay, well, maybe not perhaps totally encroaching, but with competitors chasing Tesla, this is quite an important event for Tesla. But when it comes to batteries, there are three big issues that you need to know: cost, capacity, and supply. You can have the best battery capacity on this side of the Mississippi and on the other side of the Mississippi, but if it costs too much to manufacture and put in your cars, it's practically useless. You can have the cheapest battery in the world, one that costs as much as a chicken wing, but if it doesn't hold a charge or can only take you 10 miles, then it's practically useless.

And you can have a battery that has cheap materials and long range. But if you don't have the ability to produce it at the levels of which are demanded of it, then, well, it's pretty useless. So batteries are very much a game of cost, capacity, and supply, and this is what investors will be looking for. September 22nd and knowing this ahead of time gives us an opportunity to attack Tesla stocks reaction, and before we break down what we're looking for.

In this event, let me just talk about Tesla's chart. If you look at Tesla's past, Tesla tends to have 90 percent of its runs pre-catalyst as opposed to post Catalyst. Take earnings, for example, if you look at the anticipation before earnings, almost all of the run was before this earnings date here. Same deal with the earnings here.

If you look at the anticipation of the stock split and S P inclusion, almost all of its run was pre-split Sure, there may be some runs after, but Tesla has tended to be a stock that runs up pre-catalyst and then cools off until the next catalyst. This is helpful because this means in the time leading up to Tesla's announcement, we can exploit these runs anyways. what is going to happen on Battery Day? Well, number One Elon said in an earnings call earlier this year that one of the main goals he said and I quote we have to scale battery production to crazy levels that people cannot even fathom today and they have been making good on that progress with new factories propping up like the most notable Roadrunner site in Fremont and the Berlin Gigafactory in well, Berlin. But battery date is the opportunity for Tesla to explain just how much they've improved their production, as well as what we can expect from them.

Moving forward, batteries are the most expensive component of Tesla's cars, and being able to reduce the cost of Tesla's battery can have huge implications on how much Tesla models cost over their lifetime. And the cost of Tesla's models will have huge implications on how many models Tesla is able to actually sell. Elon Musk said earlier this year that the thing that bugs me the most is that our cars are not affordable enough. We need to fix that.

Elon Musk wants his cars to be more affordable and a cheaper battery is one of the biggest ways to achieve a more affordable price. And a more affordable price is important because it would put Tesla more in the range of its best-selling competitors. But building on this is point Three and I'd say this is the biggest part of battery day, and this makes sense. Number three is the next generation battery.

A million mile battery. Now, it's widely expected that Tesla will unveil this battery on September 22nd, and it makes sense as it is battery Day. But I'd say that this is perhaps one of the biggest deals specifically because it's the battery that not just drives Tesla's cost and its practicality, but also its competitiveness. It's also true that in order for Tesla to be able to have a million mile battery, they'd have to completely redesign their battery cell.

and this battery redesign is one of the reasons that Ubs analysts doubled Tesla's price target this morning. It is also expected that Tesla will use dry electrode technology, which is expected to boost battery cell energy density by roughly 50 percent. That being said, at this point, these are still just all predictions, but there's likely a lot of weight to these predictions as Tesla has spent oodles and oodles of money acquiring companies and partnering with others that hold the technology or production capacity to make these goals a reality. Now, the last thing that we'll cover is the likelihood that Tesla unveils a new big product or a new big refresh.

I used to watch the yearly Apple presentations that Steve Jobs used to do, and in these presentations he would introduce new products and then at the very end of the presentation he'd save something big and he'd say one more thing and it would be a huge deal. like a new ipod, the introduction of itunes and so forth, and doing my research for Battery Day. I noticed a lot of people are comparing Battery Day to Steve Jobs presentations back then and right now, Tesla has this opportunity to use Battery Day as a way to unveil a new product such as a new generation of superchargers that charge faster, or an adjustment of prices that make Tesla more affordable. or hey, maybe a refresh of their current models.

A refresh in the Model S or Model X could be the straw that breaks the camel's back and makes Tesla shareholders go wild. These are all things that we need to look at as we approach Battery Day. One more thing in the context of Tesla and Elon Musk could really go quite far. But anyways, going back to how we make money off this the charts.

my original sentiment withstands the lower we can get the better. and this is especially true when considering the catalyst is coming up on the 22nd, we still have some time for Tesla to sell off and then pre-anticipatory run. But the truth is that the lower we get, the more room we'll have to run if it pre-anticipatory runs. Even if battery Day isn't enough to bring the hype to all-time highs, we still have so much room to run even to get back to previous highs.

And that's why I personally want a well, more sell it off. So my plan on this is waiting for Tesla to find a clear bottom, which is some level where it's tested multiple times and then I'm going to play it if it has a pre-anticipatory run. We want to make sure that not only has Tesla affirmed confidently and shown evidence that it's going to stay at a certain price level and not go below that, but we also want to have an affirmation that we have the price strength to get back up to where it was prior if we do get that pre-anticipatory running. okay folks, well that is it.

I'm going to leave you with that. Anyways, let me know what you think below: Do you think Tesla's going to run up to this announcement? Do you think that Tesla's battery day is going to be a huge deal? Or do you think it's going to be a complete flop? Well, let me know in the comment section below. and if you'd like to join us in Zip Trader Circle for our nightly watch list and for some community with other traders, well, you can join us in Zip Trader Circle. I'll put the link to that below.

And lastly, if you're looking to learn how to trade, we are still offering 50 off when you type in coupon code, stay stayhome2020 at checkout for Ziptraderu. And for folks who are also in California with me suffering through these fires, well stay home. 2020 has a whole new meaning, doesn't it? Anyways, folks, have a great day and I'll see you in the next video.