Tesla Motors Inc (NASDAQ:TSLA) not only wants its car in people’s garage but also wants its batteries to make a way in all garages. A spokeswoman of the company said that the company will have more things to disclose in the coming weeks. It has already posted several job advertisement related to battery storage on its official website, indicating that the company is serious to enter into a new segment.
The previous announcements
In February, Elon Musk the CEO of Tesla reported that the company will launch a Tesla battery for businesses and homes with production expected to start in this year. The company possesses technology as well as the customers to venture into the storage business. However, it will come with extended risk as the company will compete with newer companies who are no less than in resources and technology when compared to Tesla.
Ravi Manghani of GTM Research said that Tesla can become a battery provider to SolarCity Corp (NASDAQ:SCTY) and other companies that manufacture microgrids. There are several companies that sell microgrids in emerging markets including India. Also, several companies are bound to enter battery market either through partnerships or acquisitions.
Unlike the power that generates from massive power plants that move greater distances, microgrids most of the times use renewable sources of energy that are nearby, depending on the location. Such power is cheaper and reliable that power from the grid. The new microgrids product will be marketed in remote communities such as hospitals, military bases, and islands.
The so-called gigafactory is expected to produce more than car batteries. Tesla Motors Inc (NASDAQ:TSLA) is working on a battery plant worth $5 billion outside Reno, Nev. It is expected to manufacture batteries to power Tesla’s Model 3, which will come in the market in next two to three years. The new facility will minimize the energy storage costs through sheer economy of scale.