Shares of backup power provider Generac caught another downgrade. This time electric vehicles are to blame.
Jefferies analyst Saree Boroditsky downgraded shares of Generac (ticker: GNRC) to Sell from Hold Tuesday. Electric vehicle bidirectional charging is a game changer for the back-up power industry, according to the analyst. EVs-as-generators will limit Generac growth over the long run.
Jefferies analyst Saree Boroditsky downgraded shares of Generac (ticker: GNRC) to Sell from Hold Tuesday. Electric vehicle bidirectional charging is a game changer for the back-up power industry, according to the analyst. EVs-as-generators will limit Generac growth over the long run.
Her price target for Generac stock is now $85 a share, down from $95. Generac stock closed at $102 a share on Monday. Shares are down another 3% in premarket trading following the ratings cut. S&P 500 and Dow Jones Industrial Average futures are up 0.3% and 0.1%, respectively.
Investors eyes opened to the potential for EVs to power homes back when Ford Motor (F) introduced its all-electric F-150 pickup truck in May 2021. The battery pack in that truck can power a home in the event of a power outage for three to 10 days, depending on what appliances home owners choose to run.
Scenario 1. Let’s say you have a house, and you want to install a whole house backup generator system. And you also want to replace your pickup truck. You have two choices - buy a pickup truck for $65k and install a backup generator system for $25k. Or you can buy an F-150 Lightning for $90k, and install a transfer switch for $2k. For only a small extra amount, you get to drive a “cooler” vehicle. You also don’t have to deal with filling the gas periodically.
Scenario 2. You worry about outages at home for various reasons, so you plan on installing 3 Tesla Powerwalls for $30k to prevent outages. You also want a new pickup truck. Same as above. The economics work rather well to choose the fancy truck and use it once a year or once every 3 years as a home backup if necessary.
