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Interest sparked in Tesla batteries but market charging too much for stock
Tesla’s S model was the top overall pick in the recent Consumer Reports annual best cars edition. That’s a prestigious and significant ranking for a firm making cars which are met with curious and skeptical reactions from some, if not many, potential customers.
The magazine praised the car’s design, technology and futuristic appeal. However, it’s the battery providing the car with over 200 miles range on five hour charges which could take the company into a potentially more lucrative market. Electricity firms have had a one hundred year monopoly on power storage because consumers lack an efficient means to store electricity when prices are lower and then use it at peak times.
If Tesla and Panasonic, the firm’s battery partner, go ahead and successfully build a ‘gigafactory’ to mass produce batteries which can quickly and safely store large amounts of electricity; then the car firm could be speeding off in a different direction. The home battery storage solution industry could be potentially be worth around $10 Billion, in around a decade.
Saxo Bank’s Head of Equity Strategy Peter Garnry believes this market potential has largely led to the share price being inflated by retail investor enthusiasm. The stock has been trading this week at $248.00 when Peter suggests shares should, more realistically, be between $135.00 and $170.00. Why? Well, the firm admits it needs to cut the cost of the batteries by 70%, this means long term research. In addition the deal between Tesla and Panasonic is not quite yet confirmed.
02:37 minutes
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