'Largest of its Kind' Tesla Stock (NASDAQ:TSLA) Notches Up With New Battery Power Plant in China
While most of us tend to focus on electric vehicle giant Tesla (TSLA) for, well, its electric vehicles, there is one part of Tesla that tends to go oddly underappreciated: its batteries. The things that make the cars go also have a great potential to keep the lights on at our homes. And they may be about to do just that in China, as Tesla will be building a new 'grid-scale battery power plant' therein. The news sent Tesla shares up fractionally in Friday afternoon's trading.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
The new plant that Tesla is looking to build represents something of a novel approach to wide-scale power generation. While more and more users are looking to renewables like wind and solar for some part of grid-power operations, even the most fervent supporters of same know that there is a problem there: the sun does not always shine, nor does the wind always blow. So battery plants are being considered more and more as a way to store energy in the good times, to be parceled out to the grid later on.
And with Tesla's battery factory in Shanghai already having produced 100 Megapacks—the kind of battery that works at grid-level—in the first quarter alone, Tesla might be able to set up such a plant fairly rapidly. It will be quite a plant, too; reports note that the project will be '…the largest grid-side energy storage project in China,' Tesla representatives noted. Given that one Megapack can offer one megawatt for four hours, that could indeed be a serious power project.
Try Before You Buy
Want to test-drive a Tesla? Well, you may have an opportunity to do just that thanks to a partnership effort between Tesla and the Electrify Expo, which will allow users to take a Tesla home for the weekend and put it through its paces before returning it. Tesla is just the first such company to go in right now, as Electrify Expo is looking to bring in more carmakers to the deal.
Though right now, this is limited to the Los Angeles show only, which starts tomorrow, expansions are likely to follow. Dubbed the 'Electrify Weekender' experience, the event is likely to expand to Chicago, Dallas, New York, San Francisco and Seattle by the end of the year, with the Los Angeles experience serving as a way to work out any kinks in the program.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 75.97% rally in its share price over the past year, the average TSLA price target of $286.14 per share implies 11.93% downside risk.
See more TSLA analyst ratings
Disclosure
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
32 minutes ago
- Globe and Mail
This Global REIT Is Riding Asia's AI Wave Straight to the Bank
Equinix (NASDAQ: EQIX) is a powerhouse in digital infrastructure and part of a new class of innovative real estate investment trusts (REITs) laying the groundwork to become the future of real estate investing. It has a strong history of capitalizing on international technology trends that traditional REITs can't match. With a strategic expansion in Indonesia, Equinix is positioning itself for explosive growth, and Wall Street is beginning to take notice. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Why this digital land grab is a big deal Asia is becoming the global epicenter of digital demand, and Indonesia is leading the charge. It's attracting major investments in cloud computing, artificial intelligence (AI), and fintech. By entering the market early and scaling aggressively, Equinix is developing a strategic advantage that will be tough for competitors to match. Indonesia's data center market is projected to grow at a compound annual growth rate (CAGR) of 8% to $3.79 billion through 2030. Cloud giants like Amazon Web Services and Alphabet 's Google Cloud have already announced major investments, but their platforms need physical infrastructure to function. That's what makes Equinix's expansion into Jakarta so strategic. Its newly opened data center is no ordinary server farm. Built to support intensive computing tasks like training and running AI systems, Equinix is creating the critical backbone necessary for digital business growth in Indonesia. This could make Equinix one of tech's most valuable players. The average analyst price target sees Equinix at $1,009, 10% percent higher than it currently sits, a nod to its forward-looking strategy and savvy market expansion. What gives Equinix the edge In addition to its Indonesian assets, Equinix operates 270 data centers across five continents and 35 countries. It has a great track record with its customers, retaining 98% of them. As of Q1 2025, Equinix reported over $2.1 billion in annual adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). This strong combination of global scale, customer loyalty, and reliable earnings is exactly what sets the stage for Equinix's move into Jakarta to be a success. While it's not the highest-dividend REIT, Equinix pays investors 2% annually. But considering its growth trajectory looks more like a tech company than a traditional REIT, that's not too bad. The risks to watch Equinix does face potential pressures though. Their total capital expenditures for 2025 are projected between $3.4 billion and $3.7 billion, with non-recurring expenditures accounting for around 95% of that. This significant investment is partly due to the need to modernize legacy data centers to meet new levels of demand. While these upgrades are essential, they represent a substantial financial commitment that could impact short-term profitability. That said, Equinix ended Q1 2025 with roughly $2.95 billion in cash and cash equivalents and an ample $7.6 billion in total available liquidity. The balance sheet looks sturdy enough to fund expansion without putting shareholders at undue risk. Geopolitical tensions are also on the periphery of investor concerns. As Equinix operates globally, it must navigate regulatory, monetary, and political risks in emerging markets. But these risks appear to be well managed by the company's leadership, and its long-term leases, high renewal rates, and diversified customer base provide stability. It's time to stake your claim in the future of tech real estate Some investors still think REITs are too risky and don't deliver enough value. Those perceptions are often based on underperforming traditional sectors like retail or office space. That's where tech-powered REITs like Equinix come in. Gone are the days when investing in real estate meant buying a piece of something on the ground. Now you're buying into the cloud. Even in comparison to peers like Digital Realty, Equinix still stands out. It has a stronger international footprint, a more premium client base, and better historical uptime. If you're looking for a REIT that combines growth potential with resilience in the digital age, Equinix is arguably a top-tier pick. AI is only as powerful as the infrastructure behind it, and Equinix is building the digital backbone on which the future will run. Jakarta may just be one dot on the map, but it signals Equinix is putting itself at the forefront of the global shift. With recurring revenue, global scale, and a pioneering foothold in high-growth markets like Indonesia, this REIT could quietly become one of the most important tech stocks of the next decade. Investors looking to profit from AI's global expansion without the volatility of pure-play tech stocks may want to give Equinix a closer look. It might not be a flashy choice, but it's in a solid state and could be the smartest upgrade your portfolio makes this year. Should you invest $1,000 in Equinix right now? Before you buy stock in Equinix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Equinix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Philippa Main has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Digital Realty Trust, and Equinix. The Motley Fool has a disclosure policy.
Globe and Mail
2 hours ago
- Globe and Mail
Tesla (TSLA) Invites a Small Group of People to Test Its Robotaxi Service
EV maker Tesla (TSLA) has started inviting a small group of people to try out its robotaxi service in Austin, Texas. The test could begin as early as Sunday, according to Reuters. Riders must be at least 18 years old, and a Tesla employee will sit in the front passenger seat during each ride. Furthermore, the test will use about 10 Model Y SUVs running on Tesla's Full Self-Driving software. Those who receive the invitation can download Tesla's Robotaxi app to call a ride, and are asked to share their feedback on the experience. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter This trial is important for Tesla as the company shifts its focus from building affordable electric cars to working on robotics and artificial intelligence. Unsurprisingly, CEO Elon Musk says that safety is the top priority, with humans monitoring the cars remotely. He believes that the robotaxi service can grow quickly if the trial goes well. Still, experts are worried about Tesla's approach, which relies solely on cameras and AI, rather than incorporating additional sensors like lidar or radar. These worries grow in conditions like fog, heavy rain, or bright sunlight. As a result, some lawmakers and safety experts want more caution, which led a group of Austin-area Democratic lawmakers to ask Tesla to wait until September, when new state rules for autonomous vehicles take effect. It is worth noting that self-driving services are expensive and risky, and companies like Tesla, Waymo (GOOGL), and Zoox (AMZN) have already faced federal investigations and recalls after accidents. What Is the Prediction for Tesla Stock? Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $286.14 per share implies 11% downside risk. See more TSLA analyst ratings
Globe and Mail
2 hours ago
- Globe and Mail
What if Elon Musk Is Right About U.S. National Debt? 3 Stocks to Buy if He Is.
The highly public spat between Tesla CEO Elon Musk and President Donald Trump over the One, Big, Beautiful Bill highlights an ongoing, decades-long debate over national debt. The focus of this article is to explore a potential scenario and suggest a way to invest in protection against it. That path is via life and retirement insurance companies like Prudential Financial (NYSE: PRU), MetLife (NYSE: MET), and Corebridge Financial (NYSE: CRBG). Here's why. Rising debt, rising debt servicing payments This chart gets to the heart of the matter. As shown below, the U.S. national debt has increased substantially, and so has the level of debt in relation to the country's gross domestic product (GDP). The shaded areas show recessionary periods, including the financial crisis of 2008-2009 and the pandemic, whereby GDP contracted and spending soared, so naturally, the debt-to-GDP ratio did, too. Still, the response in both cases was the same: more spending and more debt. US Public Debt Outstanding data by YCharts. Musk's view is that the national debt issue needs to be addressed as it's out of control and has the potential to saddle Americans with an unsustainable debt burden, which the bill will exacerbate. To be fair, the Trump administration's aim is not to increase the deficit as officials believe it will lower the deficit, through implementation of mandatory savings and promoting GDP growth. Again, this is not the place to debate that matter. However, what if Musk is right and the U.S. continues down the path of rising debt? Higher interest rates could be around the corner Rising debt levels and debt servicing payments imply more debt issuance. Simple economics argues that, unless demand improves, the rising supply of debt will lead to a rise in the price of debt. In other words, long-term interest rates will rise, and could be higher than the market is expecting. The chart below indicates that the market is comfortable with the matter and isn't attaching a significant premium (beyond the usual premium to reflect the increased risk of holding longer-dated debt) to long-term interest rates over medium-term rates. 10 Year Treasury Rate data by YCharts. But the market could be wrong. And while Musk's primary concern appears to be the difficulty of cutting rates caused by rising debt, it's only a short step away to argue that rising debt could lead to higher long-term interest rates. Stocks to buy in a rising rate environment The situation might not be catastrophic, but interest rates could be higher than anticipated. It's not an ideal scenario for stocks overall, as it makes them relatively expensive compared to bonds. However, there is one sector that could do well, namely life and retirement insurers such as Prudential Financial, MetLife, and Corebridge. These insurance companies pick up premiums from policyholders. The policies create long-term liabilities for insurers that they need to balance against their assets. As such, they tend to invest in relatively low-risk assets, such as government debt. While rising interest rates will reduce the value of the existing debt holdings, they will also increase the discount rate used to calculate the net present value of their liabilities. Consequently, as rates rise, insurers will be able to buy corporate bonds, mortgage loans, and government debt at higher rates. Here's a breakdown of all three insurers and the assets they hold in their general accounts, which are used to match their liabilities. Data sources: Company presentations. As indicated above, the assets in their general accounts are fixed income and relatively safe investments, giving all three companies good exposure to the theme of higher long-term rates. Stocks to buy? It's important not to be too alarmist here. The debt problem is undoubtedly an issue, but it's very hard to predict where interest rates, or total interest payable, will be. That said, if you are a young person worried about the public debt burden and the possibility of higher rates over your lifetime, then it makes sense to buy stocks in this sector as a form of (I'm avoiding the obvious word) matching your assets to your potential future liabilities from rising public debt servicing costs. Should you invest $1,000 in Prudential Financial right now? Before you buy stock in Prudential Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Prudential Financial wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
