Consumer discretionary

Tesla Motors Inc (TSLA), Netflix, Inc. (NFLX) Shares Beef Up; Here’s Why

Pinterest LinkedIn Tumblr

Tesla reveals the potential of its Powerwall battery system, while Carl Icahn reportedly aims to reinvest in Netflix

Tesla Motors Inc. (NASDAQ:TSLA) and Netflix, Inc. (NASDAQ:NFLX) closed the market on higher notes this Friday, after facing heavy beatings throughout the week. While the auto maker revealed pricing and other relevant information for its commercial battery system, the Powerpack, shares of the streaming video giant sparked on reportedly reignited interest of billionaire investor Carl Icahn.

Tesla shares hit an intra-day high of $254, up 2.29% from yesterday’s trade; they closed the trading session at $253.75, up 2.20%. Meanwhile, Netflix stock surged as much as 1.80% as they hit a session high of $96.69, before they closed the day at $95.90, up 0.97%.

Tesla Energy updated its website yesterday, and added “Design Your Powerpack System” feature, allowing businesses and utilities to configure the capacity as per their requirement. Customers can place minimum orders of two and a maximum order of 54 Powerpacks, costing between $162,000 and $3.2 million, excluding installation costs.

The auto maker also shared details of grid interface products for the Powerwall and testimonies of early pilot-project customers, including Target, Jackson Family Wines, and Advanced Micro Grid. The technology can be used for demand response, emergency backup, load shifting, and peak shaving.

Although Tesla Powerwall, the home-battery system, is far more popular than the Powerpack, the commercial stationary battery is expected to be more successful. Since a Powerwall costs $3,000, a Powerpack system is equal to 54 Powerwall systems. Additionally, commercial clients usually have more buying power compared to households. Overall, Tesla Energy’s revenues could outpace Tesla’s automotive revenues in the coming years.

Carl Icahn divested all his holdings in Netflix in June 2015 and invested his sale receipts in Apple, a stock which presents an opportunity similar to that of the world’s largest online TV network. He made a hefty profit of $700 million through the transaction.

The shares received a boost after reports that Carl Icahn is considering investing in the company again. On Friday, Netflix originals outperformed at the annual Peabody Awards, scooping three honorees for 75th Annual Entertainment & Children’s Programming. Netflix’s first movie Beast of No Nation, the superhero saga Marvel’s Jessica Jones, and Aziz Ansari’s Master of None made it to the list.


Comments are closed.