Morgan Stanley optimistic about Tesla’s energy storage segment

Anticipating a surge in energy demand worldwide due to the emergence of artificial intelligence and Tesla’s potential to expand its market dominance in the energy storage sector, Morgan Stanley increased its value for the company’s energy storage division.

The firm reduced its estimate for Tesla’s 2030 vehicle sales but increased the unit’s worth to $50 per share from its $310 price goal, up from its prior estimate of $36 apiece.

A fully operating mega-factory generating big-capacity batteries is expected to make the same amount of money as one million Tesla automobiles sold.

«It’s no wonder investors are starting to consider the real possibility that Tesla Energy is worth more than Tesla Auto,» said Morgan Stanley analyst Adam Jonas.

Tesla shares are up nearly 44% over the past 10 sessions, their longest streak in more than a year, after a dismal start to the year.