TSLA: Tesla Stock Soars to Seven-Month High on Energy Business Momentum

This article first appeared on GuruFocus.

Sep 12 – Tesla (NASDAQ:TSLA) shares climbed about 7% on Friday to $395, the highest level since February, after the company expanded its energy storage offerings.

At an event in Las Vegas earlier this week, Tesla introduced its Megapack 3 battery unit alongside a new large-scale system called the Megablock. The Megablock integrates multiple Megapacks with power system components in a pre-engineered design intended to cut costs and speed up installation for utility projects. Production of Megapack 3 will begin in Houston late next year.

The launch comes as Tesla’s energy unit gains traction. Revenue from energy generation and storage rose 18% year over year to $5.5 billion in the first half of fiscal 2025, offsetting an 18% decline in automotive revenue during the same period. The business has become a more meaningful contributor as electric vehicle sales soften.

Tesla shares have rallied 15% over the past month, with much of the gain tied to this week’s product updates. The company’s market capitalization now stands at about $1.2 trillion, keeping it among the largest U.S. listed firms.