Tesla bulls and bears are focused, rightfully, on Model 3 production rate. VIN trackers are popping up everywhere, as if how many units Tesla produced in the first few months of an exponential ramp has any bearing on how many Tesla will sell in 2019, 2020 and beyond, which is really what will matter to the company’s intrinsic value. Always keep in mind that the stock price is about the future – not yesterday, not today, but the future. Yesterday matters only to the extent that it helps us predict the future. This is true, not just for Tesla, but for all companies.
So let us look at the future.
Stationary storage is a subject I struggled to understand for some time, so if you are feeling the same, you are not alone. Cars, I see every day. Lithium-ion batteries with a nickel, manganese, cobalt oxide cathode for use in increasing grid flexibility among several other purposes, not so much.
Institutional investors, however, know that stationary storage is an important opportunity for Tesla.
We think what Tesla has achieved so far is pretty remarkable, but there’s more they can do in not just automotive, but the energy markets.
The words above belong to Tom Slater, a partner and fund manager at Baillie Gifford, one of the world’s most active technology investors, which owns about 7.6 percent of Tesla’s shares.
There are three main components of Tesla Energy, Solar Roof, Powerpack, and Powerwall. And today, we will focus on Powerwall.