Tesla (TSLA) is in focus as shares surge by over 21% on Thursday after reporting mixed third quarter results this week. While the company’s main revenue driver is its electric vehicle (EV) business, Tesla CEO Elon Musk has said he expects the company's energy business to surpass its auto sector.

William Blair Group head of the energy and sustainability research sector Jed Dorsheimer joins Julie Hyman and Josh Lipton on Market Domination to examine clean energy developer Tesla Energy and its role in the space.

“The energy problem is much bigger than I think most people understand,” Dorsheimer tells Yahoo Finance, explaining that Tesla Energy’s Megapack, a large-scale stationary battery, not only helps store energy but can also help stabilize the power grid to prevent outages. “The grid stability globally is actually getting more and more fragile. And so there's going to be more deployments, particularly as we wind down thermal in terms of coal."

“This is an opportunity for Megapack,” Dorsheimer says, adding, “We see an opportunity for this business to really scale and to add a level of profitability that most... clients don't have in their models.

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This post was written by Naomi Buchanan.