Tesla shares extended their rebound on Wednesday, rising about 1% to trade near $350.
The Tesla stock has gained in four of the past five sessions, though it remains down roughly 8% on a year-to-date basis.
Tesla’s performance this year has been weighed down by the absence of new model launches and investor concerns over CEO Elon Musk’s political positions, factors that have added to pressure on the stock.
Analyst on Tesla’s Megapack
Tesla on Monday introduced its latest energy storage products, the “Megapack 3” and “Megablock,” expanding its utility-scale battery offerings.
The Megapack serves as Tesla’s platform for large-scale storage, designed to make intermittent wind and solar power more reliable by storing excess energy for later use.
The Megapack 3 incorporates updated battery cells and electronics, while the Megablock is a pre-engineered system combining batteries, switchgear, and transformers into a single unit.
Tesla said the Megablock enables installation 23% faster and reduces construction costs by 40%.
The company described the launch as part of its broader goal of achieving “sustainable abundance via sustainable energy.”
William Blair analyst Jed Dorsheimer called the Megablock “a game-changer for grid storage customers” in a note published Wednesday, citing Tesla’s ability to simplify and vertically integrate through its manufacturing expertise.
“We are finding it increasingly difficult to maintain a Market Perform rating, especially with the positive momentum in the energy business and robotaxi,” he wrote, while noting he is watching how margins respond to the loss of environmental tax credit revenue in the second half of the year.
The street on the Tesla stock
Wells Fargo analyst Colin Langan said Tesla’s August sales data remains weak despite the approaching expiration of IRA incentives on September 30.
The bank noted that deliveries across the three major markets it tracks are trending 9% lower year-over-year, though 37% higher compared with July.
Despite the month-over-month increase, Wells Fargo cautioned that third-quarter deliveries remain at risk of falling short of consensus expectations.
The firm maintains an Underweight rating on Tesla shares with a price target of $120.
Tesla’s long-term outlook remains closely tied to CEO Elon Musk and the company’s ambitions in artificial intelligence, Morgan Stanley analysts said in a note earlier this week.
The firm pointed to Musk’s proposed compensation package as central to Tesla’s strategic direction, adding that it alleviates concerns over his long-term commitment to the company.
Analysts noted Musk’s stated desire to maintain at least a “blocking minority” stake of around 25% to retain influence in any potential change of control.
With no clear near-term succession plan in place, Morgan Stanley expects Musk’s focus on Tesla to deepen as the company expands AI-enabled manufacturing and advances commercialisation of physical AI products.
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