As Tesla’s Q4 2019 earnings call draws closer, TSLA (TSLA: NASDAQ) analysts debate over how the Elon Musk-led company’s stock should be valued. One investment company thinks Tesla is precisely as it seems: an EV automaker. TSLA bulls may not agree.

According to Barron’s, BNP Exane downgraded Tesla recently from Buy to Hold. BNP Exane is the research sector of French Bank BNP Paribas. Despite downgrading TSLA, Exane equity analyst Stuart Pearson raised his target price for the stock.

Pearson explained his position and shared his thoughts on how the company should be valued in a research report. “Tesla remains uniquely well-placed to capitalize on a 2020 boom in global [electric vehicle] demand,” wrote Pearson in his report.

The equity analyst seemed to have a positive outlook on Tesla, even though Exane downgraded its stock. However, the Exane analyst had misgivings about how TSLA was being valued. “The debate has shifted beyond the realms of the pure [battery-electric vehicle] story to energy and tech-play vision with which we are less comfortable.”

Credit: Tesla

Like Pearson, other analysts—including those who try to remain impartial and objective about TSLA—often overlook or ignore the EV maker’s other products. Meanwhile, bulls believe that Tesla could reach up to a trillion-dollar valuation because of its other products and offerings.

Tesla’s label as a tech company has come about because of the company’s other products and offerings. Indeed the well-known EV automaker has started to delve into newer projects. The company’s Energy division has been part of it for quite some time now, but its Solarglass Roof and battery storage tech haven’t been getting much attention.

Recently, Tesla has shown its potential as a Software-as-a-Service company with the release of Acceleration Boost Upgrade for the Dual Motor AWD Model 3. It also started a subscription service for its Premium Connectivity Package.

Tesla’s Solarglass Roof, battery storage tech, and paid OTA updates don’t accurately describe a company that just sells all-electric vehicles, which is why bulls believe that the company is a tech stock and is grossly undervalued. So the question remains: Is Tesla just a car company, or is it developing into a tech giant?

Featured Image Credit: Tesla

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