Tesla Energy, a division of Tesla that has flown under the radar for some time, is finally getting the attention it deserves from Wall Street analysts. The company, known primarily for its electric vehicles, has been making significant strides in its energy division, catching the eye of experts in the financial world.
Analysts are starting to factor in the growth of Tesla Energy when evaluating the overall value of Tesla’s stock. Ben Kallo of Baird recently noted that the rapid expansion and impressive margins of the energy business are beginning to shift the focus of investors. According to Kallo, Tesla Energy could account for as much as $41 per share in the company’s valuation.
Morgan Stanley analyst Adam Jonas also adjusted his price target for Tesla stock to reflect the growing importance of the Energy division. After Tesla reported strong numbers for its energy products in the second quarter, Jonas increased the Energy division’s share of the price target significantly.
In Q2, Tesla deployed a record-breaking 9.4 GWh of energy storage products, surpassing previous quarters by a significant margin. This outstanding performance has not gone unnoticed by analysts, who are now recognizing the potential impact of Tesla Energy on the company’s overall value.
The energy division of Tesla has long been overlooked, but with its recent success and growing influence, it is becoming a crucial player in the company’s future. As Wall Street continues to take notice of Tesla Energy’s potential, the division’s role in shaping Tesla’s valuation is poised to grow even further.
