What Wall Street Thinks About Tesla's Massive Thursday Announcement

On Thursday, Tesla Motors Inc TSLA is expected to announce stationary storage products for businesses and homes. In two notes this morning, both Deutsche Bank and Credit Suisse analysts said that this announcement could have a material impact to Tesla's bottom line. And investors agree, pushing the stock more than 6.5 percent higher today to trade at $232.71 at last price. The stock now trades at its highest level since December 2014.

At Deutsche Bank, the analysts said that Tesla's home, utility grid sized stationary storage products could be huge, potentially adding $5 to 2020 EPS. While the overall "opportunity is clear," Deutsche Bank said that the potential could be "more significant than the Street currently expects." Additionally, the business will provide Tesla with a cushion if its automotive growth – which Deutsche Bank said was still the "core" of Tesla's investment thesis – slows.

Credit Suisse analysts argued that Tesla has expanded its addressable market by 75 percent and that the core business has a backlog that is "very solid." Specific to storage, the analysts pegged the business as adding $35 to $40 per share today. Significantly, Credit Suisse said that Tesla's stationary storage is "further evolved than we had thought" and that it de-risks investments in the Gigafactory. The "value of this business can be material."

Tesla is currently trading near the middle of its 52-week range of $177.22 to $291.42. Credit Suisse said that Tesla should trade back towards its highs, placing a price target of $290 on the shares. At Deutsche Bank, the analysts slapped a $245 price target, though it could move higher in the wake of Tesla's announcement.