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Morgan Stanley Is Optimistic About Tesla's Market For Energy Storage

Morgan Stanley Is Optimistic About Tesla's Market For Energy Storage
Morgan Stanley increased its price estimate for Tesla's energy storage division, citing the company's potential to expand its market position in the industry and a global spike in power consumption brought on by the rise in artificial intelligence.
The firm reduced its estimate for Tesla's 2030 vehicle sales but increased the value of the unit at $50 per share of its $310 price target, up from its prior estimate of $36 per share.
According to estimations, the earnings from selling one million Tesla vehicles is equivalent to what would be made from a fully operational megafactory that produces large-storage batteries.
According to Morgan Stanley analyst Adam Jonas, "it's no wonder that investors are starting to consider the real possibility that Tesla Energy may be worth more than Tesla Auto."
Following a gloomy start to the year, Tesla shares have risen about 44% over the last ten sessions, marking their biggest run in over a year.
According to LSEG statistics, last week was the first time in six months that the daily trading turnover for Tesla shares surpassed that of Nvidia, the darling of AI.
Tesla's energy storage sales are expected to reach $3 billion in the current quarter, according to a note from Oppenheimer published on Tuesday. However, the study also stated that "the value of its full-self driving /AI platform is the key to whether shares will continue moving higher or begin to moderate again."
Elon Musk, the CEO, said in April that Tesla will probably release fully autonomous software this year, which would be a significant source of revenue.
In the second quarter of 2024, Tesla deployed 9.4 gigawatt hours of energy storage devices, which is more than twice as much as it did from January to March.
Among its products are Megapack, designed for large-scale commercial projects and utilities, and the Powerwall residential power backup device.

Christopher J. Mitchell

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