Tesla’s CEO Elon Musk has confirmed the bundling of solar panels and solar roofs with the Powerwall home battery in a series of tweets. According to a Bloomberg report, any solar power generated from these panels will feed directly into Powerwall. The Powerwall will act as a backup during utility dropouts when interfacing between the utility meter and the main breaker panel.
A move to bundle the solar products together affirms Tesla’s (TSLA) push to convince investors of its prospects in the residential energy technology sector.
Tesla has been making inroads into the energy sector. According to a Bloomberg report, in 2015, Tesla completed the acquisition of SolarCity. With the purchase, it became a key player in the solar panel installation business. While the company has made several changes and upgraded its solar roof, it is yet to be a big player in the market, according to Bloomberg.com.
After a blockbuster 2020, Tesla shares are up 5.4% year to date. (See Tesla stock analysis on TipRanks)
Awaiting Tesla 1Q 2021 financial results, Mizuho Securities’ Vijay Rakesh maintains a Buy rating on the stock. According to Rakesh, the company is well-positioned to be a leader in the EV market with improving battery technology.
“In addition, TSLA could also gain significant share in the solar and energy storage backup generation market, driving further revenue and improved profitability with technology synergies shared between EV and Energy Storage segments,” wrote Rakesh in a research note to investors.
Rakesh has an $820 price target on Tesla stock, implying 13.94% upside potential to current levels.
Consensus among analysts is a Hold for TSLA, based on 11 Buy, 8 Hold, and 7 Sell ratings. The average analyst price target of $703.13 implies a downside potential of about 5.3% to current levels.
TSLA scores a 2 out of 10 on TipRanks’ Smart Score rating tool, indicating the stock is likely to underperform the overall market.
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