Tesla Motors works in one industry but can be broken into 2 segments. Auto Industry and Battery Industry. Their batteries are designed for the auto industry but having a battery division, with the most advanced batteries in the world, allows Tesla to work with the other manufactures; supplying them batteries for their electric Vehicles. Recently, Toyota and Mercedes implemented Tesla’s battery into the Rav4 and Mercedes B-Class. Also, they are currently in the process of building a massive 5 billion dollar battery factory that will produce more lithium ion batteries in 2020 than all of the world’s combined output today. The plant is scheduled to open next year and will be running at full capacity by 2020. Economies of scale dictate this will dramatically decrease their cost.
Recently, Elon Musk announced that reservations for the new battery system called powerwall could be a game changer. They are meant to be paired with solar panels and can store large amounts of power for only $3,000 to $3,500. Tesla has already received reservations for nearly $800 million in powerwalls (13)They don’t have to be paired with solar panels though. They can collect power in off peak hours and be used during peak hours. The pilot study they ran in California has shown that electric bills were reduced by 20-30%. Plus, they are guaranteed to last 10 years (14). The big question is how long it takes to pay off the average of $3250. My electric bill for the past 12 months = $1594, so a 25% savings would be $396 per year. 10 years equal $3960, this is a savings of $710 assuming I don’t save the money and my electric bill doesn’t increase in the next ten years. This may seem insignificant but it also provides a 48 hour supply of electricity if the power goes out during a storm, keeping your house warm or sub pump from backing up and flooding your basement which can cause much more than $3500 in damage.
Recently, Elon Musk announced that reservations for the new battery system called powerwall could be a game changer. They are meant to be paired with solar panels and can store large amounts of power for only $3,000 to $3,500. Tesla has already received reservations for nearly $800 million in powerwalls (13)They don’t have to be paired with solar panels though. They can collect power in off peak hours and be used during peak hours. The pilot study they ran in California has shown that electric bills were reduced by 20-30%. Plus, they are guaranteed to last 10 years (14). The big question is how long it takes to pay off the average of $3250. My electric bill for the past 12 months = $1594, so a 25% savings would be $396 per year. 10 years equal $3960, this is a savings of $710 assuming I don’t save the money and my electric bill doesn’t increase in the next ten years. This may seem insignificant but it also provides a 48 hour supply of electricity if the power goes out during a storm, keeping your house warm or sub pump from backing up and flooding your basement which can cause much more than $3500 in damage.