Tesla Motors, Inc.’s TSLA shares gained 4.8% to reach $219.44 on Apr 22 after it was reported that the company is set to unveil two energy storage batteries on Apr 30. One of the batteries will be for home use and the other will be a large utility scale battery.
The launch was expected, as last month CEO Elon Musk had tweeted that the company will launch a new product line at its Hawthorne Design Studio on Apr 30. However, Musk had not revealed what kind of product it would be, choosing instead to tease investors by mentioning that it is not a car. This had sparked widespread speculation about what the product may be, although most people had correctly guessed that it would be energy storage batteries as it was known that the company is developing one.
Apart from unveiling the batteries, Tesla will also explain why similar products have not been successful in the past and the reason behind its batteries being better than competing products. Per media reports, Tesla is already offering home batteries under a pilot project with SolarCity Corp. SCTY, and nearly 330 homes are utilizing these at present.
The batteries are three-feet high, 2.5 feet wide and need to be installed 1.5 feet above the ground. These can store power generated by solar panels for use at night. However, it is possible that the batteries to be unveiled on Apr 30 are different from these.
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 stated that it will be an integrated bidirectional inverter, which means that the electricity can flow in both directions. If Tesla’s batteries prove to be a successful launch, it would reduce people’s reliance on utility companies, affecting their revenues in turn.
Tesla currently carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks include General Motors Co. GM and PACCAR Inc. PCAR. While General Motors sports a Zacks Rank #1 (Strong Buy), PACCAR carries a Zacks Rank #2 (Buy).
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