According to Tesla CEO Elon Musk, solar energy has the potential to meet all of our energy needs. Musk made this statement during a recent episode of “The Joe Rogan Experience” podcast, where he stated that just a 100-mile by 100-mile area of solar panels could power the entire United States. Host Joe Rogan was intrigued by this idea and asked if it was possible to cover a dead spot with solar panels and charge the entire country, to which Musk replied, “Absolutely.”
Musk explained that powering the country with solar energy is not difficult or unattainable because the sun is continuously converting mass into energy and requires no maintenance. He referred to the sun as a “giant fusion reactor in the sky” that just works.
Musk’s perspective not only highlights the technological possibilities of solar energy but also emphasizes the financial potential of the solar industry. The United States is expected to add a record 32 GW of new solar capacity this year, a 52% increase from 2022, according to a report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
In light of this growing interest in solar energy, Wall Street has identified three solar stocks with significant upside potential. One of these stocks is Enphase Energy (ENPH), a leading supplier of microinverter-based solar and battery systems. Despite experiencing fluctuations in its stock price, Enphase has shown promising growth, with the company shipping millions of microinverters and generating substantial revenue. Goldman Sachs analyst Brian Lee has a “buy” rating on Enphase and a price target that suggests a potential upside of around 70%.
Another solar stock to watch is First Solar (FSLR), which produces solar panels for utility-scale solar power plants. Although its stock performance has been less consistent, First Solar has attracted investor attention in recent years. The company reported net sales of $801 million in the third quarter, and JPMorgan analyst Mark Strouse recently upgraded First Solar from “neutral” to “overweight,” with a price target indicating a potential upside of 44%.
Even Tesla (TSLA), primarily known for its electric vehicles, has a role in the solar energy industry. After acquiring SolarCity in 2016, Tesla has integrated solar energy into its mission of accelerating the transition to sustainable energy. The company offers solar panels for residential and commercial use, as well as energy storage solutions. Despite supply chain challenges, Tesla deployed 348 MW of solar in 2022, the highest deployment since 2017. Morgan Stanley analyst Adam Jonas has an “overweight” rating on Tesla and a price target that suggests a potential upside of approximately 56%.
In conclusion, solar energy has the potential to revolutionize the energy sector and meet our energy needs. As the solar industry continues to grow, companies like Enphase Energy, First Solar, and Tesla are positioned to benefit from this trend.
