Tesla's Energy Sales Growth Amid Broader Market Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy TSLA?
Source: Benzinga
Tesla Inc's stock fell 3.26% as it hit a 20-day low, reflecting broader market weakness with the Nasdaq-100 down 1.69% and the S&P 500 down 1.45%.
Despite the decline in stock price, Tesla reported a significant sale of $430 million in energy storage products to Elon Musk's AI startup xAI, which accounted for 3.4% of its energy business revenue. This sale highlights Tesla's growth potential in the energy sector, even as the automotive market faces challenges with declining EV sales and investment uncertainty.
The implications of this sale suggest that Tesla is successfully diversifying its revenue streams, particularly in the energy sector, which could provide a buffer against the volatility in its automotive sales. However, the overall market conditions remain challenging for automakers, indicating a need for continued innovation and adaptation.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 397.210
Low
25.28
Averages
401.93
High
600.00
Current: 397.210
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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