Analyst Sees No Utility In A Tesla Motors Inc. Power Play

Tesla Motors Inc.

investors are ill-advised to view the stock as a play in the utilities industry, an analyst told Benzina Monday. Tesla, expected to unveil a utilities-scale battery Thursday, as well as a separate battery for home use, saw its shares jump more than 7 percent Monday, apparently on stepped-up anticipation of the new products' potential. Tesla already has a pilot program related to batteries with SolarCity Corp.

. Both companies are headed by Elon Musk. But Raymond James' Carlos Newall told Benzinga that the two companies don't currently constitute a viable "utilities sector play." In an interview, Newall said a Tesla battery storage system may foster growth in the solar sector as substitutes for coal-generated power are increasingly sought. The analyst said the sale of surplus energy from home-based solar power units could save residential users cash, while utilities may find peak-use burdens eased. Solar City gained less than 1 percent Monday to about $60.61. Musk promised investors in February that Tesla would launch a home battery product "very soon." Bloomberg reported last week that Tesla will announce a home battery and a "very large" utility-scale battery on April 30. http://www.bloomberg.com/news/articles/2015-04-21/tesla-motors-to-unveil-home-and-utility-batteries-april-30 Separately, Deutsche Bank analysts reportedly said Monday the new battery products could add $100 per share to Tesla's stock value within five years. http://www.bloomberg.com/news/articles/2015-04-27/deutsche-bank-this-week-s-tesla-announcement-could-be-a-bigger-deal-than-investors-realize