Most Tesla Motors Inc TSLA shareholders and enthusiasts typically focus on the company’s revolutionary electric cars as the centerpiece of its business. However, Tesla’s battery technology and its massive GigaFactory could end up being major profit drivers in the future.
According to Global Equities Research analyst Trip Chowdhry, lots of people are confused about Tesla’s battery technology and the role it will play.
“Tesla is not just creating products, Tesla is creating a completely New Industry, which is being built on loosely coupled, but tightly integrated sub-ecosystems,” Chowdhry explains.
He sees the GigaFactory as one of the tightly integrated sub-ecosystems. He says that the factory alone could ultimately be valued at $50 billion, more than 150 percent more than Tesla’s entire current market cap.
“It is very important for every Technology Investor to get completely comfortable with the Physics and Chemistry of the various Battery Technologies, as this is essential to fully understand and appreciate the Industry impact of GigaFactory,” Chowdhry notes.
Chowdhry says investors and competition of Tesla is about Battery Electric Vehicle (BEV)s, automated vehicles, clean technology and/or a fast-charging technology, but he believes they're all missing the bog picture.
Global Equities Research will be releasing part II of the report on battery technology and Tesla’s GigaFactory next week.
Disclosure: the author holds no position in the stocks mentioned.
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