Tesla Motorcycles Would Sell 'Amazingly Well,' Batteries Could Justify $28 Billion Market Cap

Tesla Motors Inc TSLA is only hours away from unveiling its next product, which is believed to be a residential battery. And it could change the future of the company.

"The battery would be the thing that would make Tesla's stock worth what it is today, not the auto division," Sean Udall, CIO of Quantum Trading Strategies and author of The TechStrat Report, told Benzinga. Udall likes the idea of being able to store solar energy for use at night, but he has serious doubts about the peak period theory. He said that if consumers started drawing power in the middle of the night to save money (when energy consumption is down), energy companies would eventually raise their rates so that consumers pay the same amount regardless.

"My most likely view was that they're definitely making a battery, [but] the motorcycle thing is an interesting idea," said Udall. "I do think electric motorcycles would sell amazingly well. You know it would look like a Ducati or a Triumph, which means it would look gorgeous."

Udall believes that a Tesla motorcycle would be an international success.

"In fact, it would probably sell better in a lot of other countries than it would sell in the United States," he said. "That's sort of my fantasy product for Tesla to make."

Related Link: 5 New Tesla Products Coming In The Next 5 Years

'Really High-Priced Batteries'

Patrick Moorhead, president and principal analyst at Moor Insights & Strategy, told Benzinga that he expects Tesla to introduce "really high-priced batteries to get energy when it's cheap and save it up and use it off the battery when it's expensive."

"My second choice would be a motorcycle," Moorhead told Benzinga. "That would be my second guess or prediction on what they would bring to the table, primarily on the demographic that would want to buy something like this."

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.