The 2020 pandemic hit many companies hard, while other companies took it as a chance to grow, seemingly unaffected by the state of the world around them. NVIDIA (NASDAQ:NVDA) came out as one of those thriving businesses and achieved gains of 122% in 2020. The company’s graphics processing units (GPUs) were present and needed for trends that accelerated exponentially due to the pandemic, boost...
Tesla (NASDAQ: TSLA) rose 4% on Monday as of 12:00 p.m. CT. Analysts have seen this as a new factor for future stock predictions, and many think it can increase to over $1000 in the next 12 months.
Avatar, the stock flew to $900 earlier this year, it slipped back in late February. Does this low price mean a buying chance for interested investors?
The road to $1000+
Analysts have changed their rating on the stock from hold to buy, and that is nothing unexpected.
The majority of Tesla’s revenue can be attributed to the sales of its electric cars. However, many speculate that Tesla’s solar energy generation and storage business could generate over $8 billion dollars in revenue annually within the next five years.
Tesla has started to resolve its battery cell supply shortage during its most recent quarter and is well-positioned to grow by selling its energy storage products, as it is believed that it has a significant advantage over the competition.
Going with the flow
Tesla’s electric car business receives more praise than its energy storage businesses, given the revenue difference. However, energy storage developments increased quicker in 2020 than electric car sales.
Total energy storage deployments increased 83% year over year to GWh (gigawatt hours) in 2020. This can be attributed to Megapack’s popularity, Tesla’s utility-scale storage product. While it is currently limited in terms of production, constrained due to a backlog, it is ramping up and bound to grow in 2021.
While investors must always make their own research and decisions on the Tesla stock, we strongly recommend considering a usually ignored aspect of the business that may contribute to Tesla’s stock value down the line.