Structural Shift in the Coal Industry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy TSLA?
Source: NASDAQ.COM
- Declining Coal Market Share: Coal once generated over 50% of U.S. electricity but now accounts for only 17%, with projections suggesting it could drop to 7% by 2035, indicating a rapid erosion of coal's role in the energy economy and altering investor perspectives on the energy market.
- Rise of Battery Storage Technology: The cost of battery storage systems has plummeted, with the global benchmark for a four-hour battery project falling to $78 per megawatt-hour, a 27% year-on-year decrease, enabling solar plus storage to compete directly with existing coal plants in some regions, accelerating retirements.
- Economic Viability of Renewables: The abundance of natural gas and the cost advantages of renewables have significantly diminished coal's competitiveness, particularly as solar and wind have become some of the lowest-cost sources of new electricity generation in the U.S., prompting utilities to replace aging coal facilities.
- Shift in Investment Opportunities: As coal's market value declines, investors should focus on modern energy technologies like solar, wind, and battery storage systems, which are expected to yield significant wealth creation opportunities, especially as the coal industry faces obsolescence.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 380.300
Low
25.28
Averages
401.93
High
600.00
Current: 380.300
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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