Economy

Currently, Tesla is the leading company in the first release of the Battery StorageTech Bankability Ratings report, and is the only supplier to feature in the top AAA-Rating band.

While Tesla relies upon some third-party battery cell supply, the quarterly deployment levels of ESS solutions are currently trending at record highs (almost 10 GWh). Furthermore, Tesla’s Financial Scores are at the upper end of all the companies analyzed in the first report, although ESS operations still represent a minor part of the total group turnover.

Over the next 12 months, it is expected that significant changes will unfold in the Bankability Pyramid; in particular, arising from the number of new Chinese companies that have entered the sector in the past couple of years. However, it is unclear how the fortunes of these producers will evolve since many of them are largely ‘China-centric’ in their positioning and lack any manufacturing capacity outside mainland China.

Ultimately, the sector could become segmented in geographic supply coverage, driven by US/China trade policy or the realignment of EV/ESS upstream manufacturing to satisfy the geographic location-of-manufacturing demands from the EV industry globally.