Musk Says Renewable Energy Shift to Give Utilities Strife
Tesla Motors Inc. (TSLA)’s Elon Musk, already taking on the auto and aerospace industries, is going after utilities by seeking to drive down the cost of storing energy through building cheaper batteries.
The electric carmaker said in a Feb. 26 filing it’s developed a battery to store power for homes, commercial sites and utilities, the same day as announcing plans to invest as much as $5 billion in the world’s largest battery factory. The Palo Alto, California-based company is seeking to cut the cost of lithium-ion batteries by at least 30 percent.
Shifting to greater use of wind and solar power will bring “some amount of strife for the existing utilities, especially for those invested more heavily in fossil fuels,” Musk, who is also chairman of solar-power company SolarCity Corp. (SCTY), said yesterday at a California Public Utilities Commission event in San Francisco.
Tesla No DeLorean as 619% Jump Makes Hottest Auto Stock
Tesla Motors Inc. (TSLA), propelled by praise from Consumer Reports and plans to build a better battery and expand in Asia, has cemented its place as the highest-flying automobile stock in at least two decades.
While further gains may become more challenging with Tesla now trading at 154 times estimated earnings, the youngest U.S. carmaker has already beaten odds that crushed startups such as DeLorean Motor Co., Tucker Car Corp. and Fisker Automotive Inc.
Elon Musk is a game changer, who understands that the rules of the game have changed in favour of clean affordable energy.
To keep the Tesla share price rising he has no choice except to find new economic growth opportunities that will bring new revenues.