Tesla Motors Inc. climbed the most in three weeks after two analysts said the electric-car maker’s plan to offer storage batteries for homes and businesses is a growth opportunity.
The automaker is using its lithium-ion battery technology to position itself as a front-runner in the emerging market for energy storage that supplements, and may ultimately threaten, the traditional electric grid. Tesla is scheduled to unveil a home battery and “very large” utility-scale battery Thursday at its design studio in Hawthorne, California.
“While the stationary storage market is still in its infancy, we believe that there are clear indications that significant growth lies ahead,” Rod Lache, a Deutsche Bank analyst, wrote in a note to clients. He rates the shares buy and has a $245 price target.
Tesla rose 6 percent to $231.55 at the close in New York, the biggest daily advance since April 6 and the third-largest gain in the Russell 1000 Index. The Palo Alto, California-based company’s stock is up 4.1 percent this year.
Dan Galves, a Credit Suisse analyst, said in a note that the storage battery business could add $35 to $40 to the share price. Galves, who rates the stock outperform and has a $290 price target, also said improvements to Tesla’s Model S car will increase demand and will make for an easier introduction for its Model X.