Boston, MA 02/28/2014 (wallstreetpr) – The internet is buzzing with rumors that Tesla Motors Inc (NASDAQ:TSLA) is seriously considering an entry in the home storage business.
The Reason Behind The Rumor:
A simple public discussion between public and Tesla Motors Inc (NASDAQ:TSLA) has now blossomed into a torrent of discussions over the internet. The issue was always being debated as the first model by Tesla, the Roadstar, had a facility of sending power back to the source. The current model, Model S does not have this facility. An innocent question by a persistent questioner about energy storage for home use in a meeting between the public and the CEO, Elon Musk, and CTO, JB Straubel, has started a chain reaction. The two executives got talking about the various features.
No Smoke Without Fire:
Though no one from Tesla Motors Inc (NASDAQ:TSLA) has confirmed the news, there are several indications. The first one was the reaction of Elon Musk. It is well-known that Tesla has supply side issues and it is barely manufacturing enough batteries to power its cars. The company is in a partnership with SolarCity Corp (NASDAQ:SCTY) on a project called ‘DemandLogic’. DemandLogic attempts to supply electricity to essential equipment during power outages. Energy rates charged by utility companies vary according to the usage. Peak rates are generally higher. Now DemandLogic can also be programmed to switch to stored power during peak rates, saving the consumers a lot of money.
The second indication is from the plans for the gigafactory. Tesla is partnering with others to build a factory for manufacturing batteries. The production is planned on such a scale that it will be equal to ‘the total global production of batteries in 2013’. The factory is expected to start production by 2017. All these batteries cannot be consumed by the current users and demand is also not expected to rise by the traditional users.
The inference is quite obvious. Tesla Motors Inc (NASDAQ:TSLA) has the capability, the technology as well as a hidden demand for providing energy storage solutions for home needs.
