Tesla Plans 100 GW Solar Manufacturing Capacity Amid Geopolitical Shifts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy TSLA?
Source: Yahoo Finance
- Strategic Long-Term View: Tesla's plan to develop 100 GW of solar manufacturing capacity reflects a long-term strategic perspective shaped by geopolitical factors, supply chain risks, and rising demand from data centers, which could enhance the company's vertical integration in the energy sector.
- Potential Value Increase: Morgan Stanley analysts suggest that Tesla's solar ambitions could add $25–$50 billion ($6–$14 per share) to its current $140 billion Tesla Energy valuation, indicating strong market potential and investor interest.
- Revenue and Profit Expectations: Once scaled, Tesla Solar is expected to generate $25 billion in revenue and an additional $3–$4 billion in EBIT, significantly boosting the company's financial performance and market position.
- Capital Investment Requirements: Although the 100 GW build-out could require $30–$70 billion in capital investment, Morgan Stanley believes the long-term benefits may justify this expenditure, particularly due to its strategic link to Tesla's energy storage business.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 417.070
Low
25.28
Averages
401.93
High
600.00
Current: 417.070
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Business Ventures: Tesla plans to launch household robots priced between $20,000 and $30,000 by the end of 2027, a move that may be driven by the stagnation of its EV business, highlighting the company's urgent need for diversification.
- Intensified Market Competition: Global EV sales reached 20.7 million in 2023, a 21% increase, with competitors like BYD and Volkswagen capturing significant market share, suggesting that Tesla's dominance in the EV market is being challenged.
- Uncertain Future Outlook: While Tesla's prospects in autonomous driving and solar energy are promising, market skepticism remains regarding the profitability and timelines of its new ventures, as analysts generally value TSLA stock at only $422.09, reflecting investor uncertainty about future growth.
See More
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- Declining EV Profitability: As of the end of last year, Tesla's net profit per vehicle was only $4,000, significantly down from $10,000 in 2022, indicating severe challenges to profitability amid the ongoing EV price wars.
- Intensifying Market Competition: Global EV sales reached 20.7 million units in 2023, a 21% increase, with Tesla losing market share to competitors like BYD and Volkswagen, undermining its position in a rapidly growing market.
- Investor Confidence Shaken: Despite Musk's continued optimism about the future, analysts have set a target price of only $422.09 for Tesla stock, reflecting concerns about the outlook for its EV business, leading investors to adopt a cautious stance regarding the company's diversification strategy.
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