Why This Analyst Feels Tesla Is Grossly Overestimating Energy Storage Prospects
Portfolio Pulse from Priya Nigam
Bernstein's analyst Toni Sacconaghi has maintained an Underperform rating and a price target of $150 for Tesla Inc (NASDAQ:TSLA), stating that the company is overestimating the growth of its energy storage system (ESS) market. Sacconaghi believes that the ESS market could grow to about 700GWh annual deployment by 2030, which is less than a third of what Tesla is forecasting. He also assumes Tesla will have a 15% share in the global ESS market, contrary to Tesla's assumption of 43%.
July 07, 2023 | 3:07 pm
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Tesla's stock may be negatively impacted in the short term due to Bernstein's analyst Toni Sacconaghi's Underperform rating and his belief that the company is overestimating its ESS market growth.
Analyst ratings often influence investor sentiment and can impact a company's stock price. In this case, Sacconaghi's Underperform rating and skepticism over Tesla's ESS market growth could lead to a decrease in investor confidence, potentially causing a short-term negative impact on Tesla's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100