Here we are again talking about Tesla (NASDAQ:TSLA). The stock has suffered a split andhas lost about 17 percent in thelast week alone. To top it all off, the news a few days ago: Tesla will not be included in the S&P500. Let’s just say that visionary Elon Musk’s company has still been making waves.

But what is about to happen?

Battery Day. A unique event for Tesla, where Elon will unveil important news regarding the batteries in the new Teslas. The event will be held on September 22. And you will say, “Good! Important news, bright future, the title can only do good!”

Not really. And I’ll tell you why.

Have you ever heard of the Osborne Effect? It is a social phenomenon that could go on to impact Tesla’s current products after the company reveals information about future products. In terms of technology, this effect is amplified. Why? Simple, technology becomes obsolete quickly and needs to be replaced. What does it mean for Tesla? If Elon Musk were to announce million-mile batteries, lo and behold, sales of current cars with batteries that last not even a quarter would collapse. Those who wanted to buy a Tesla might in fact wait for the new batteries. All this would impact the company’s already weak revenues. Elon needs to be careful. Again it may reveal surprises. That it may make the replacement of old batteries with new ones available on cars already sold? Who knows.

Tesla and battery day. What if the announcement is different?

Let us consider the opposite path. Elon Musk does not announce any major battery news. But how, such an important and highly anticipated event for everyone and it doesn’t reveal anything about anything? Here is a bad signal for investors, keeping in mind that the electric car market is booming and competitors are doing everything they can to establish themselves in the markets. What if tesla falls behind? Big problem for shareholders.

Let us therefore reflect on these effects. Isn’t the market already discounting something? I expect high volatility on the stock still throughout September. It is a title for strong hearts. Tesla will probably be the future. But I honestly don’t feel ready to put it in my portfolio.

Thank you for reading.

Here you can also find the podcast discussing the Tesla and Apple Split and last week’s fall in the markets . Happy listening!

Podcast Episode 1: The Apple and Tesla Split

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