Market Overview

Patent Applications Hint At Tesla's Forthcoming Innovations

Patent Applications Hint At Tesla's Forthcoming Innovations

Elon Musk is spread pretty thin these days as he manages The Boring Company, SpaceX and Tesla Inc (NASDAQ: TSLA). In turn, Tesla’s spread pretty thin as it balances ventures in automotive manufacturing, solar energy and battery construction.

As a Musk investor, it’s difficult to know where to focus.

But Tesla’s 11 patent applications filed between May and September might offer some insight. 

The patents included safety mechanisms, communication redundancies and a replacement technique for lithium-ion batteries; weight-supporting structures, fluid-directing valves, auto-configured seat belts, air conditioning vents and traction control systems for Tesla’s all-wheel-drive electric vehicles; and a heat-recovering industrial oven for materials treatment.

As Baird Equity Research points out, the applications are heavily focused on energy safety and efficiency, primarily for automotive development.

'A Competitive Advantage Over The Long Term' 

Upon approval, these patents should insulate Tesla from rivals and help the firm remain an industry leader.

“We believe superior manufacturing and differentiated technology should give TSLA a competitive advantage over the long term,” Baird analyst Ben Kallo said in a Friday note. (See Kallo's track record here.) 

Baird anticipates continued innovation from Tesla in gigafactory, solar and other technology that will merit additional patent filings.

Investment Implications

Baird reiterated its Outperform on Tesla with a $411 price target. Kallo sees catalysts in increased Model 3 production, October’s semi-truck reveal, reviews of Tesla’s solar roofs, additional energy projects and news about upcoming gigafactories.

At the time of publication, Tesla was trading at $342.87.

Related Links:
3 Reasons To Believe In Elon Musk For The 'Future Of Humanity’
Elon Musk Wants To Save Us From Killer Robots

The Tesla Gigafactory in Nevada. Courtesy photo. 

Latest Ratings for TSLA

Jan 2021JP MorganMaintainsUnderweight
Jan 2021OppenheimerMaintainsOutperform
Jan 2021WedbushMaintainsNeutral

View More Analyst Ratings for TSLA
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