Elon Musk has had a good couple of weeks as the Tesla (NASDAQ:TSLA) stock price has shown recently. Very strong Q3 auto sales are expected to continue into Q4. Musk’s talk about his Mars colonization plans, though typically highly ambitious, were well-received by all but the usual Tesla Musk bears. Recent commercial storage orders have been less emphasized but represent further strong gains for the company.
Those writers who criticize Musk’s vertical integration model for new energy products are either hooked up with the fossil fuel industry or fail to understand the way the world is going. Chinese manufacturer BYD Company (OTCPK:BYDDY) have already gone a long way down that road, and have been very successful accordingly. They have just launched a new energy storage system in Europe using lithium iron-phosphate batteries.
Tesla is now consolidating its vertically integrated new energy systems. This will tie in their interests in electric vehicles (EV’s), rooftop solar and energy storage systems. Success is coming remarkably quickly now in their energy storage business. This is happening as the Gigafactory production ramps up and approvals are received. There is a huge market appearing rapidly for cost-effective energy storage which can overcome the mismatch between renewable energy supply and energy demand.
Commercial Gains.
In September the California Public Utilities Commission awarded the world’s largest lithium ion battery storage project to Tesla. The company will provide a 20 MW/80 MWh Powerpack system at the Southern California Edison Mira Loma substation. This was necessitated by a huge and polluting rupture in the Aliso Canyon natural gas reservoir. 15 million residents were potentially affected.
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