How Tesla can turn energy into a nearly $200 billion business

Elon Musk aims to expand Tesla’s solar production to 100 gigawatts, positioning the company as a dominant player in renewable energy. The ambitious target would require full vertical integration, from raw materials to finished solar panels. Morgan Stanley estimates Tesla’s energy division could grow into a nearly $200 billion business, adding $50 billion in value. This projection hinges on successful scaling of solar manufacturing capacity over the next few years. Achieving the goal may cost up to $70 billion, according to analysts, requiring aggressive investment. Musk’s plan signals a major shift toward energy as a core revenue driver alongside electric vehicles. The strategy involves controlling the entire solar supply chain, reducing dependency on third-party suppliers. This vertical integration could improve efficiency and lower production costs over time. The announcement was made during Tesla’s recent earnings call, underscoring Musk’s long-term vision for energy dominance. Success would redefine Tesla’s market position beyond automotive manufacturing.