Tesla Motors, Inc.’s TSLA CEO Elon Musk tweeted that the company will launch a new product line at its Hawthorne Design Studio on Apr 30. Musk’s specification that the new product line is not a car has sparked widespread speculation about what the product may be.
The most common hypothesis is that Tesla will launch a solar energy battery storage unit for home and business use as Musk had revealed that the company is developing one, in its last earnings conference call in February. He had also said that the home battery would be unveiled within one or two months of the conference call, which makes Apr 30 an ideal date for its launch.
A media report also revealed that Tesla is hiring several employees for its stationary storage business unit. The company expects the business to generate billions of dollars every year.
Nearly a year ago, Musk said that Tesla’s home battery will be flat and similar in appearance to the Model S battery pack. He also said that it will be an integrated bidirectional inverter, which means that the electricity can flow in both directions.
The battery will be able to store solar energy during the day for use at night. If Tesla’s home battery proves to be a successful launch, it would reduce people’s reliance on utility companies, affecting their revenues in turn.
Musk’s tweet led to a 3% gain in Tesla’s stock that closed at $190.57 on Mar 30. Tesla currently carries a Zacks Rank #3 (Hold).
Better-ranked automobile stocks include Tata Motors Limited TTM, General Motors Company GM and Wabash National Corp. WNC. While Tata Motors sports a Zacks Rank #1 (Strong Buy), both General Motors and Wabash National carry a Zacks Rank #2 (Buy).
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