TECH - Elon Musk's Bet Paying Off? Tesla Energy Segment Gets Thumbs Up From Top Analyst Even As EV Sales Dwindle | Benzinga
Morgan Stanley analyst and Tesla Inc. (NASDAQ:TSLA) bull Adam Jonas has revised his estimates for the company’s financials, giving significantly higher emphasis to Tesla’s energy generation and storage segment.
What Happened: Jonas retained his price target of $310 on Tesla shares, with the energy segment representing $50 per share, significantly higher than the $36 estimate before. The analyst also lowered his core auto valuation by $15 per share.
Jonas is now estimating the company to sell only 5.7 million vehicles in 2030 as compared to his previous estimate of 6 million vehicles, given the ongoing fall in demand for EVs and hybrid renaissance.
According to Jonas’ calculations, Tesla’s energy segment can now generate about $2 of EPS by 2030, particularly assuming that the operating profit from selling one Megapack will be equivalent to the profit made from selling 100 cars owing to the high operating margin for the energy storage business.
“Tesla’s renewed focus on the energy business, combined with its innovation, scale, and growing brand loyalty, ...