Tesla (TSLA) rises today with a new $ 1 trillion price target from a top analyst who sees the company develop an Apple-like ecosystem for energy.
Canaccord Genuity analyst Jed Dorsheimer is about to issue a new note to customers today drastically raising his Tesla price target from $ 419 to $ 1,071, which is a valuation of about $ 1 billion for the car manufacturer would mean.
In the note, the analyst compares Tesla with Apple.
He believes the way Tesla is developing an energy ecosystem is similar to Apple’s personal computer and entertainment ecosystem.
While most analysts focus on Tesla’s automotive business and especially on self-driving technology for future growth, Dorsheimer likes Tesla’s energy business:
“Although we are rich, we also believe that Tesla has a lead of a few years and is now aggressively expanding into storage, and therefore we feel that our multiplicity is justified.”
CEO Elon Musk said people were underestimating the potential of Tesla Energy.
He said earlier that “Tesla Energy is becoming a widespread global utility and could outgrow the automotive business.”
Dorsheimer is of the opinion that this will become clearer next year as soon as Tesla is less battery cell limiting thanks to its own battery cell production:
“We believe that large capital investments to increase the production capacity of the battery will start to bear fruit in 2022, as Giga Texas and Berlin 4680 start cell production. “Tesla has positioned itself as the brand in energy, and as the restrictions on the supply of solar and energy storage products are removed, consumers will be more entrenched in its electricity ecosystem.”
Dorsheimer is one of the best analysts in the world. He holds the no. 219 of the 7431 analysts on TipRanks with a success rate of 54% and an average return of 34%.
Electrekthey take
This has been the vision since the integration of SolarCity into Tesla, but most analysts have not taken this into account in their models, and I can not really blame them.
It did not look like much with the solar power business that has lapsed since the acquisition and limited integrations of the overall product offering until recently.
But I can definitely see it happening.
I describe my thoughts in an article: “Tesla (TSLA)’s next phase of massive growth is driven by its energy division” last year.
There are going to be some obstacles along the way, like the Solar Roof product which is still a mess for now, but we can see that Tesla is setting up the building blocks to be the best brand for everything with solar power, battery and charger .
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