Tesla Energy Is on the Rise as Company Secures Big Deals

Image credit: Tesla

Tesla continues to grow, fueled by developments of its Energy division. The company has struck major deals to supply Megapacks that will keep cash flowing for years to come. Analysts are gradually changing their forecasts to positive with recommendations to buy the manufacturer's shares. Welcome to our weekly roundup of news from Jowua.

Tesla Energy is on the rise

Akaysha Energy has announced the Orana Battery Energy Storage System (BESS), which will be deployed near Wellington, New South Wales, Australia. It will be one of the world's largest four-hour battery systems and will be powered by Tesla Megapacks, adding over 1,660MWh of storage capacity to Australia's National Electricity Market.

Earlier this week, a new battery project in California was also announced. Arevon’s Condor BESS with a capacity of 200 MW/800 MWh is under construction on the site of a former steam power plant in Grand Terrace, San Bernardino County. Project Condor is equipped with Tesla Megapack 2 XL batteries.

Tesla also struck a multi-billion dollar deal to supply Megapacks with Intersect Power. The company will receive 15.3 gigawatt hours (GWh) of Megapacks from Tesla through 2030. They will be used in a number of Intersect's solar and energy storage projects. More than half of the Megapacks ordered will be used in four BESSs in California and Texas. The deal is valued at about $3.5 billion, although exact details and price were not disclosed.

Analysts are positive ahead of Q2 2024 earnings report

Tesla will release its financial results for the past quarter on July 23. On the eve of this, analysts are revising their forecasts and they are shifting in a positive direction. Baird analysts reiterated their "outperform" rating, citing strong performance ahead of the report. The company wrote that it was buying shares of the manufacturer. The positive outlook is driven by more stable pricing conditions during the quarter, higher revenue from fully autonomous driving, and strong growth in the energy segment.

Analysts at Global Equities Research raised their target price for Tesla shares from $340 to $400. They highlighted that the company is now experiencing increased demand driven by a $7,500 EV credit at the point of sale.

Megafactory in China under construction according to plan

Tesla's energy storage system factory in Shanghai, China, is under construction as planned, according to a statement from Grace Tao, global vice president of Tesla. Construction will be completed this year, and production should begin in the first quarter of 2025. Once fully operational, the Megafactory will produce 10,000 Megapacks per year, equivalent to nearly 40 gigawatt-hours of energy storage capacity.

Model Y is the best-selling NEV car in China

Tesla's Model Y became China's best-selling new energy vehicle (NEV) in the first six months of the year. Tesla sold 207,817 Model Ys, nearly 40,000 more units than its closest competitor, BYD, with 167,861 Seagulls. In third place was Nissan Sylphy with 161,379 units sold. BYD also was in fourth place with 152,042 Qin Plus DM. Volkswagen Lavida rounded out the top five with 137,452 units sold.

Robotaxi event postponed

The Robotaxi presentation event, previously scheduled for August, has been postponed. First, there was a report that it would take place in October. Later, Elon Musk confirmed that the event would not take place in August, although he did not specify when it would take place. He clarified that the delay was due to an “important design change to the front” of the vehicle that he had personally requested. Some analysts are already viewing the date delay as positive news, which could mean that with a few extra months, Tesla could deliver a finished product ready for production to begin in 2025.