AUS
NZ
UK
CA
USA
IND
Tesla Inc. (NASDAQ:TSLA) is in the spotlight as it gears up for its highly anticipated robotaxi event. William Blair has recently initiated coverage of Tesla with an Outperform rating, citing the company's underappreciated energy storage business as a key factor in its future growth.
Bullish on Tesla Energy
William Blair’s analyst Jed Dorsheimer has expressed optimism about Tesla’s energy storage segment, predicting that it will become a major growth driver for the company. Dorsheimer believes that investor attention will increasingly shift from electric vehicles (EVs) to energy storage solutions, particularly in the context of grid stabilization, data center expansion, and renewable energy integration.
Dorsheimer likened Tesla’s potential in energy storage and other emerging technologies to Apple’s ecosystem, suggesting that Tesla's future growth could be as significant. The firm's positive outlook is further bolstered by Tesla’s technological leadership and its innovative approach in AI, robotaxis, and robotics.
Valuation and Market Performance
Tesla’s current valuation reflects high investor expectations. The stock trades at 29 times William Blair’s 2026 EBITDA estimate and 49 times its 2026 EPS estimate. While these multiples are steep, the firm argues that Tesla’s leadership under Elon Musk, combined with its culture of innovation, justifies the premium valuation.
However, recent performance metrics paint a more complex picture. Tesla’s automotive gross margin fell to 18.47% in the second quarter from 19.22% the previous year. The increase in non-automotive revenue, which now constitutes 22% of total sales compared to 14.67% in Q2 2023, has a lower gross margin, negatively affecting overall profitability. Despite the growth in Tesla’s energy business, it has not yet proven strong enough to offset declines in its core EV business, where demand is waning.
Ambitious Price Targets and Skepticism
Cathie Wood, known for her bullish views on disruptive technologies, has set an ambitious price target of $2,600 for Tesla by 2029, suggesting a potential upside of 1300% from current levels. Wood envisions Tesla’s robotaxi project generating $8 to $10 trillion in revenue by 2030.
Yet, there is skepticism regarding Tesla’s ability to meet these high expectations. Each robotaxi is projected to cost between $150,000 and $200,000, with estimates indicating that developing a global fleet could require around $35 billion. This substantial investment and the associated risks contribute to uncertainty about whether Tesla can achieve its robotaxi goals.
