tesla motors' bet on home battery could pay off big time - home battery storage
Hawthorne, California(TheStreet)--
It doesn't matter if Elon Musk is late. Tesla's (TSLA -Get Report)
The hangar at the airport near Los Angeles is shaking and ready to charge.
The big publicity conference on Thursday night launched the electric-
Automakers enter the energy sector
Tesla's storage business will be pinning its hopes on selling millions of new battery units that can improve household energy efficiency or take them out of the grid entirely with solar panels.
Tesla Chairman and CEO Musk told reporters before the announcement: "Our goal here is to fundamentally change the way the world uses energy . ".
"At an extreme scale. "In pre-
Tesla's share price rose 1 in Friday's trading. 4% to $229. 10. The four-foot tall, six-Thick wall-
The installed Powerwall home battery represents 12-year-
Old companies that have not yet made profits since 2010 initial public offerings.
But it's also a long process.
Brian Buchwald of Bomoda, a CEOof marketing company, said Musk could create a small market for Tesla and set up a profit center.
"This is a great opportunity," Buchwald said in a telephone interview . ".
"The market is very immature, so the question for Elon and Tesla is whether they have the ability and perseverance to continue to be that way for the next five to ten years?
"Hua Qi.
"Because the development of the market may take so long. "The lithium-
Ion power wall device-
7 KW price from $3,000-
10 KW hours to $3,500--
Store excess energy generated by solar panels for use when there is little sunlight, or store cheaper, low-cost energy
Demand time for houses on the Internet.
The batteries will start shipping in the US this summer and expand to Germany later this year and then to Australia.
"Based on the initial signs of demand, I don't think we will have much trouble selling it," Musk said . " He added that production could expand next year.
But Tesla will not wait for consumers to line up.
The company has launched a larger industrial Powerpack unit to companies such as Amazon (Amazon (AMZN -Get Report)and Target (TGT -Get Report).
By attracting businesses and consumers, it is likely that Tesla will use "wires"
Carl Brewer, an analyst at Kelly's Blue Book, said it cut off the "spirit of people abandoning cable TV for Internet streaming to help energy consumers break up with utilities.
Brawer said in a statement: "As solar panels become cheaper and easier to install, the only thing that keeps consumers connected with the energy grid is that when the sun doesn't shine,
"If Tesla can help consumers Bridge the sun, it could force power companies to deal with the same problems that threaten home phones and cable companies.
"Tesla is still at risk.
The young company faces competition from companies such as General Electric. GE -Get Report)and Samsung (SSNLF).
Consumers have not been clamoring for one
Home Charging Energy
Battery, Tesla is not mass production yet
Its only product is the S-type car.
"It hasn't shown yet that it can get bigger --
Large-scale and large-scale production
Scale consumption, "said buhwald.
So to a certain extent, he (Musk)
He looked away from the ball and entered a market for consumers who were not really ready.
Musk said he expects the battery business to have a "low but growing gross profit margin" by the fourth quarter and make a profit next year.
Like a Computer 40 years ago, Powerwall devices-
Although beautifully designed, there are six colors to choose from-
The widespread acceptance and demand of consumers may take decades.
"This is Elon's bet," said buhwald . ".
"Over time, prices will drop and utilities will get bigger, something consumers will eventually buy.