The Palo Alto, California-based company’s odds of success in the battery and solar-power industry prompted the investment bank Piper Sandler to set a 12-month price forecast of $928.
â€śAfter logging 53,448 miles and surviving four Minnesota winters (with no noticeable range degradation), we are convinced that Tesla’s automotive products offer a superior ownership experience,â€ť analyst Alexander Potter wrote while raising his price target from $729. â€śIf history is any indication, we’ll eventually be saying something similar about generating and storing our own solar power.â€ť
While batteries and solar power amounted to just 6 percent of Teslaâ€™s sales in 2019, management has said its revenue will eventually rival that of the automotive business.
Potter says itâ€™s â€śtough to ignoreâ€ť the size of the addressable market for Teslaâ€™s integrated solar roof, which is about $165 billion a year. The marketâ€™s size increases by another $70 billion per year when taking into account the cost of two Powerwalls, the company’s home batteries, for each new solar roof.
Wednesdayâ€™s gains have stretched Teslaâ€™s year-to-date growth to more than 105 percent, putting extreme pressure on short-sellers, or traders betting that shares would fall.