Tesla is increasingly focusing on renewable energy as a whole, rather than just electric vehicles, offering a broad range of solar and energy storage products for clean energy purposes. The result has made Tesla into an unprecedented and new type of company, and one that offers huge benefits to the world in the way of general sustainability.
Above: A house with Tesla's solar panels and Powerwall storage systems. (Image: Tesla)
Canaccord Genuity analyst George Gianarikas called Tesla a “sustainability behemoth” in a recent note to clients, as detailed in a report from Yahoo Finance. Pointing to Tesla’s solar and energy storage program, its electric vehicles (EVs) and its dominant positions in both, Gianarikas expects to see continued growth from the company.
“When we look over the next six to 12 months, and over the next multiple of years, it's actually pretty positive for Tesla,” Gianarikas said. “They have an incredibly strong balance sheet to weather a recession. And on the other side, they are destined to increase their leadership in EVs, which we think are on the cusp of really penetrating the overall auto market.”
The news comes following significant drops in Tesla’s share price over the last several months, yielding different perspectives on the decline coming from bulls and bears. With a particular focus on the long-term upside of Tesla’s stock, Gianarikas also cautions that the near-term for the energy-tech-auto stock may still be unclear.
"The near-term is incredibly uncertain. But it's being reflected in the stock,” Gianarikas added. “Sometimes stocks tend to bottom before the fundamentals do. So when we look out to the long-term, there is a lot of earnings power here. The company has lots of growth vectors, whether it's EVs, semis, robotics — we are very positive in the long-term."
It’s tough to say with any certainty what could happen to Tesla’s stock in the future, as pointed out by former Tesla bull and Wedbush analyst Daniel Ives in recent weeks.
"At the same time that Tesla is cutting prices and inventory is starting to build globally in face of a likely global recession, Musk is viewed as 'asleep at the wheel' from a leadership perspective for Tesla at the time investors need a CEO to navigate this Category 5 storm," Ives said.
One thing is certain: Tesla’s energy program has expanded greatly since it acquired SolarCity in 2016, and its addition of the Megapack, Powerwall, solar panels and solar inverter has changed the landscape of renewable energy on both residential and commercial scales. And these areas are only set to grow in the coming years, even if Tesla’s current stock prices may not necessarily reflect its potential for upside.
Source: Yahoo Finance