Tesla Energy’s Stellar Q2 Performance Prompts Morgan Stanley to Revise Price Target Breakdown
Tesla’s recent Q2 vehicle delivery report has shifted the spotlight onto its burgeoning energy division, prompting Morgan Stanley analyst Adam Jonas to reconsider the company’s valuation structure. Once primarily seen as an automotive powerhouse, Tesla is proving its prowess in energy storage, AI, robotics, and software.
Record-Breaking Energy Storage Deployments
Tesla Energy posted an unprecedented 9.4 GWh of battery storage deployed in Q2 2024, a figure that dwarfed the company’s previous record of 4.053 MWh in Q1. This 132% quarter-over-quarter increase underscores Tesla’s commitment to revolutionizing the energy sector.
Analyst Adjustments and Predictions
In a note to investors, Jonas highlighted the possibility that Tesla Energy might eventually hold more value than Tesla’s automotive division. Tesla’s stock price surged following a delivery beat by 6,000 units over Wall Street’s expectations. However, many analysts attribute the boost to the energy division’s performance rather than car sales alone.
Jonas’s analysis broke down Tesla’s $310 price target, attributing $284 to the automotive sector. Previously, the energy segment accounted for only $36 of this target, but Jonas has now increased that estimate to $50 per share. This adjustment also comes alongside a reduction in Morgan Stanley’s 2030 auto sales forecast for Tesla.
Tesla Energy’s Future Prospects
Elon Musk, Tesla’s CEO, had long predicted the ascension of Tesla Energy. During the Q3 2019 earnings call, Musk stated, "It would be difficult to overstate the degree to which Tesla Energy is going to be a major part of Tesla’s activity in the future." According to Musk, the energy division could eventually match or even surpass the automotive side in significance.
Investor Sentiment Shifts
The robust performance of Tesla Energy has noticeably affected investor sentiment. What was once a company predominantly recognized for its electric vehicles is now acknowledged as a multifaceted corporation with substantial stakes in various high-growth industries.
The Bigger Picture
From energy storage to software and AI, Tesla is positioning itself as a versatile tech leader. As Jonas and other analysts revisit their models, it’s clear that Tesla’s non-automotive ventures will play a substantial role in its market valuation moving forward.
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8 Comments
Wow, Tesla is really proving to be more than just a car company. Their energy division’s growth is stunning!
Absolutely! It’s fascinating to see how they’re expanding into so many different sectors.
Yeah but they should stick to cars. Too much diversification might be risky.
Can’t believe people still buy into this hype. The numbers are just inflated to boost stock prices.
Interesting read! The information about Tesla energy storage deployment was very insightful. I think this could mark a significant shift in the energy market.
ha! Elon thinks his ‘battery company’ will outshine the car division? Next thing you know, Tesla will start selling toasters.
Oh great, as if we needed another reason for Tesla fanboys to go crazy. Get ready for the ‘Tesla is saving the world’ rants.
So true, Karen! The hype train has no brakes!