Tesla (NASDAQ:TSLA) was a notable exception to today's broadly negative trend, closing +4.4% after Piper Sandler reiterated its Outperform rating and raised its price target to $515 from $480 ahead of the company's Battery Day event next week.
Piper's Alexander Potter expects Tesla's energy business eventually will reach more than $200B/year in revenue and control more than a third of the market for stationary batteries.
"We anticipate sharply higher demand for these products, particularly in the late 2020s and 2030s as renewable energy grows toward 40% of electricity generation," the analyst writes.
Tesla Energy represented $1.5B in revenue for the company in FY 2019, which Potter predicts will hit $12.4B in 2023 and cross $200B by 2033.
"Any announcements of qualitative and quantitative improvements on Battery Day will lead to substantial increases in potential energy storage revenues," Nick Cox wrote in a bullish analysis recently posted on Seeking Alpha. "Investors should bear this in mind when calculating future revenue streams for the company."
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