Tesla Power? Why Tesla may want to sell you more than an electric car

MARKETWATCH WSJ. Feb. 25th, 2014. By Claudia Assis. Another day, another record for Tesla shares, with Wall Street increasingly aware that this is more than an investment in electric cars. It’s also about batteries.  “If it can be a leader in commercializing battery packs, investors may never look at Tesla the same way again,” Morgan Stanley analysts said in a note Tuesday. “Tesla is an extremely ambitious company for whom flooding the market with fun-to-drive EVs and giving competitors a headache might not be the endgame.”  Tesla TSLA +3.83% shares soared more than 16% to $254.14 on Tuesday, all but certain to close at a record. The stock has been on a tear since Feb. 10, setting record closes in seven of the past 11 trading days.  

The Morgan Stanley analysts, led by Adam Jonas, argued Tesla could become the world’s low-cost producer in energy storage, opening the door for Tesla to disrupt “adjacent industries.” They upped their price target on the stock to $320 from $153.  Power storage is in something of a “space race” moment, with several companies dedicated to making it possible to turn on your coffee machine in the morning using electricity generated by yesterday’s sunshine or wind.  Storage is the “missing piece in the renewable energy puzzle,” Morgan Stanley said. Include Tesla in that hunt, it added.  Tesla is expected to announce its plan for a battery ‘gigafactory’ this week, possibly offering details around a partnership and the location of the plant.

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