Tesla shares charged up ahead of battery news

Pardon the pun, but Tesla (TSLA) bulls are charged up.

Just days ahead of the company's announcement about its newest product, a stationary storage battery unit, the company's shares on Monday rose 6 percent to $231.55, sending them nearly 16 percent higher over the past year.

The gains followed an upbeat report from Deutsche Bank analyst Rod Lache, who argued the battery pack has the potential to completely change how consumers and investors look at the electric automaker.

"Based on preliminary work on the economics of stationary storage, we believe that this has potential to be more significant than the Street currently expects," he wrote in a note to investors.

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Lache said the stationary storage business could add $5 to his firm's $20 earnings per share estimate for Tesla in 2020. He went on to say that if Tesla trades with a price to earnings ratio of 20, then the battery business would be worth $100 a share.

To be sure, there are plenty of suppositions behind Lache's estimate. But his optimism is noteworthy, as the battery business will be critical to Tesla's future.

Tesla plans to build the battery packs at its Gigafactory just outside of Reno, Nevada. The massive plant will employ 6,500 workers and has the potential to crank out a half million lithium-ion batteries by 2020.