HOW BIG COULD TESLA’S ENERGY STORAGE BUSINESS BE ?

1. We have estimated that the size of the Global Energy Storage Market using current storage battery technology would be around $3.65 trillion per year

- the market price of Energy Storage Systems is assumed to be $500 per kWh

2. Let us assume that Tesla is able to hold a 20% Global Market Share of this business

- so Tesla’s Revenues should be $730 billion per year

3. Let us assume that Tesla is able to earn a 25% Gross Margin on this business

- so Tesla’s Gross Profit would be $182.5 billion per year

4. Let us assume that R&D and Overhead are already covered in Tesla’s Income Statement

- so Tesla’s Operating Profit would be $182.5 billion per year

- and Net Income would be $146 billion per year

5. If Net Income is $146 billion per year then the Market Capitalization of this incremental business should be :

- $1,460 billion at a 10x P/ E Multiple

- $2,920 billion at a 20x P/ E Multiple