Tesla Analyst Believes Megapack Is A $120B Sleeping Giant That Could Surpass EV Business, Flags Next Big Catalyst For Stock
Portfolio Pulse from Shanthi Rexaline
RBC Capital Markets analyst Tom Narayan highlighted Tesla's Megapack battery storage business as a potential major growth area, possibly surpassing its EV business. He estimated the Megapack's value at $120B by 2024, based on a projected 15% market share of the $600 billion annual battery storage industry by 2040. Despite challenges in the EV sector, Narayan maintained an Outperform rating and a $297 price target for Tesla, citing the upcoming launch of an affordable model as a key catalyst.
March 01, 2024 | 6:27 am
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Tesla's Megapack battery storage business is identified as a significant growth opportunity, potentially surpassing its EV business, with an estimated value of $120B by 2024. Despite current EV market challenges, the company's stock maintains an Outperform rating with a $297 price target.
The analysis by RBC Capital Markets highlights the significant potential of Tesla's Megapack business, suggesting a major growth avenue beyond its core EV business. The valuation of $120B by 2024 for the Megapack business, along with the anticipation of a new affordable model, supports a positive outlook for Tesla's stock in the short term. The Outperform rating and $297 price target further underscore the analyst's confidence in Tesla's future performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100