William Blair has initiated its coverage of Tesla (TSLA) with an Outperform rating. The bullish call highlights the EV maker’s under-appreciated energy storage business and notes its “Apple-esque” ecosystem. William Blair Group head of the energy and sustainability research sector Jed Dorsheimer joins Market Domination to discuss the call.
Dorsheimer notes that with the increasing fragility of the electric grid, Tesla is in a good position as its Megapack adds storage to help stabilize the grid. He believes that the energy side of Tesla’s business will continue to grow and projects it to add close to $3 in earnings per share in the future.
CEO Elon Musk “has always seen the business as an energy play,” Dorsheimer explains. While most of the attention is focused on Tesla’s electric vehicles, Dorsheimer believes that energy has been overlooked.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Melanie Riehl