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‘Buy Tesla’: Goldman Sachs defines investments as the Age of Oil closes

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Goldman Sachs is preparing for the lapse of the Age of Oil, predicting big gains for the companies that continue to help expand the footprint of sustainable energy. As the world begins to move away from petrol-based fuels and favor renewable sources of energy, Goldman Sachs is allowing investors to look at some of the companies that are leading the charge in specific sectors, especially automotive, where Tesla has established itself as one of the more favorable investment opportunities for those who want to support electrification in ways outside of simply purchasing products. However, Tesla isn’t the only car company that is listed, and cars are not the only topic that Goldman analysts are bullish on as the Age of Oil begins its imminent demise.

“We remain above consensus on oil demand forecasts through 2025, and we still do not forecast peak oil demand this decade, though we expect oil demand growth beyond 2025 to be anemic, mainly due to electrification,” a team of Goldman Sachs analysts wrote in the sixth installment of the Future of Energy Demand Series. “We now expect transport oil to peak in 2026, but we see robust growth for petrochemicals and jet fuel offsetting declines in transport demand in 2025-2030.”

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Likely expected, commercial travel is going to be the largest hoop to jump through in the fight to decrease the usage of fossil fuels. Global logistics, travel, and business all currently depend on fossil fuels to keep things moving globally. Still, some companies are attempting to reduce their carbon footprint by experimenting with small-scale projects. UPS, for example, recently purchased all-electric Vertical Takeoff and Landing (eVTOL) drones that can help with deliveries. The BETA aircraft that UPS is experimenting with is capable of carrying 1,400 pounds of cargo with 250 miles of range. “This is all about innovation with a focus on returns for our business, our customers, and the environment,” Juan Perez, UPS Chief Information and Engineering Officer said.

The biggest disruptions for the global oil and petrol market come where electrification is becoming a more favorable option. The largest disruptions occur in the passenger vehicle market, where companies like Tesla and Volkswagen are Goldman’s biggest picks. The analysts see growing profit pools for the EV value change in these companies over the long term, especially as they are currently the two most-talked-about forces in the global electric car sector. Tesla’s Model 3 and Model Y are continuing to be two of the world’s most popular electric vehicles, while Volkswagen is rolling out its ID. family of vehicles that have been highly effective for many, despite some complaints about software.

Interestingly, Tesla’s energy side is still a relatively unmentioned player in the solar sector. It is rarely mentioned when analysts break down price targets for the company, even though its solar, battery, and energy storage products are among the most effective and affordable in the United States. Chamath Palihapitiya says some of the biggest gains in Tesla’s stock could come through its energy business.

Tesla Energy gets optimistic outlook from board member Kimbal Musk

“There are trillions of dollars of bonds, of CAPEX, of value sitting inside the energy generation infrastructure of the world, that is going to go upside down. When that goes pear-shaped, Tesla will double and triple again,” Palihapitiya said in January.

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Nevertheless, the Age of Oil is slowly but surely coming to a close. The companies that continue to push their sustainable forms of energy are expected to come out as big winners, leaving fossil fuel and petrol-dependent companies on the backburner for the next several decades.

Disclosure: Joey Klender is a TSLA Shareholder.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Energy

Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure

Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

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Credit: Tesla

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.

Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.

Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.

LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.

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The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.

For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.

During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”

It seems as if Tesla has managed to secure some of this needed domestic supply chain.

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Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe

The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack. 

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Credit: Tesla Asia/X

Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery. 

The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system. 

New Tesla Megapack Milestone

As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.

To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.

Quick Megafactory Ramp

The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.

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While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.

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Energy

Tesla launches first Virtual Power Plant in UK – get paid to use solar

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.

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Credit: Tesla Energy | X

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.

Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.

The company states that those who enroll in the program can earn up to £300 per month.

Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.

This is its first in the UK:

Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.

It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.

Tesla VPP program in California hits new capacity milestone

Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.

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