Tesla will host Indian Prime Minister Narendra Modi at its Fremont office this month, and it could open up a new market for the U.S. firm. Global Equities Research analyst Trip Chowdhry views India as a potential energy storage market.
India a potential market for Tesla
Chowdhry notes that the meeting of Tesla CEO Elon Musk and Chief Technical Officer JB Straubel with Modi seems important if we consider that the Indian PM has the ambition to lead to cut carbon footprints. India aims to hit 100 gigawatts (GW) of solar-generating capacity by 2022, including generating 40,000 megawatt (MW) from roof-top solar panels and distributed generation projects, says a report from Livemint. Chowdhry believes the Indian PM could ask the EV firm for an investment in storage products in India.
India is an apt market for solar power generation as it gets 5-7 kWh per square mile solar rays for almost 300 to 330 days, says Livemint.
Tesla claims that its home home-powering battery products could change the way electricity is used. Tesla’s home storage solution, Powerwall, comes in two versions: a 10-kilowatt hour (kWh) model costing $3,500 and a 7kWh model costing $3,000. Such products are believed to provide high economic value in Australia and Europe and possibly in India too. In Australia, the U.S. firm aims to install 33 GW of battery storage by 2040, according to Bloomberg.
Tesla could sell cars in India too
Modi will be visiting the Tesla Fremont factory during his U.S. visit. He will be addressing Stanford University on Sept. 26 and will take part in a round-table discussion on clean energy. India is also working to lower pollution levels from diesel-powered vehicles due to rising health problems.
In the note, Chowdhry says that the PM could even be offered a Model S ride by Musk. And Tesla could get an invite to open four to five dealerships in India. Chowdhry believes four Indian cities; Mumbai, Delhi, Chandigarh and Bangalore, hold potential from an electric car point of view. Tesla could sell a minimum of 10,000 to 12,000 Model S cars annually in India, Chowdhry believes.
On Wednesday, Tesla shares closed up 0.05% at $261.06. Year to date, the stock is up by over 17% while in the last year, shares are up by almost 1%. Chowdhry has an Overweight rating on Tesla with a price target of $385.