Tesla Signs $300M Arizona Power Deal with KKR Project; Stock Faces Analyst Downside to $300

According to Bloomberg, Tesla on Tuesday signed a major long-term power purchase agreement to buy electricity from Project Sterling, a KKR-backed solar and battery facility in Arizona. The project includes 509 MW of solar capacity and a 360 MW battery storage system with 1.4 GWh of energy capacity. Tesla will purchase 90% of the project's output under the 10-to-15 year agreement. The facility, developed by ContourGlobal, is expected to begin operations in 2028.

Meanwhile, Gary Black, Managing Partner of Future Fund LLC, stated on Tuesday that he expects Tesla stock to fall below $300 in coming weeks due to valuation concerns, citing a forward price-to-earnings ratio exceeding 175x as excessive. Separately, RBC Capital analyst Tom Narayan lowered Tesla's price target to $480 from $500 while maintaining an Outperform rating.