From Nasdaq:

A bullish analyst has reduced the price target for Tesla, saying it’s time for investors to consider the company’s other businesses aside from electric vehicle manufacturing. He predicts that Tesla Energy will contribute 12% of company revenue by 2025, double that of 2023, and capture 15%-20% of global stationary battery deployments.

The analyst estimates that by the 2030s, Tesla’s energy business will generate 10 times the revenue that could be made from Cybertrucks, with over half of the $4.4 billion gross profit growth between 2023 and 2025 coming from the sales of stationary batteries. He states that while full-self driving is still key for the Tesla thesis in the long-term, stationary batteries will be a more important driver of growth in the next few years.

Following the analyst’s report, Tesla stock dropped by 4.42% to $179.60. The analyst made it clear that the valuation upside for Tesla can no longer be achieved by relying only on car manufacturing, while also reducing his 2024 volume estimate for Tesla from 2.18 million units to 1.93 million units.

It is anticipated that Tesla Energy’s battery-related revenue is poised to rise to 12% of company revenue by 2025, double that of 2023. The analyst also foresees an increase in Tesla’s market share globally due to the contribution from the Megafactory in Lathrop, California.

The analyst predicted that Tesla will eventually capture 15%-20% of the global market share for stationary battery deployments, attributing the expected growth to the contribution of the Megafactory in Lathrop, California. He also mentioned that Tesla Energy will likely generate 10 times the revenue that could be made from Cybertrucks by the 2030s.



Read more: Tesla Analyst Says Stock Worth Only $135 If Just EVs Were Considered, But Sees This Segment As ‘Important Growth Driver’