Tesla wants to expand into residential properties

CEO Elon Musk unveils his company’s new battery system for homes and businesses

Updated Jul 28, 2015

Tesla Motors announced its new home battery system, Tesla Energy, in a media event at company’s design studio in California on Thursday.

Electric car manufacturer describes "Tesla Energy” as “a suite of batteries for homes, businesses, and utilities fostering a clean energy ecosystem and helping wean the world off fossil fuels.”

Tesla will produce lithium-ion batteries, called Powerwall and be distributed by various companies including SolarCity, a solar energy installer which is founded by Musk’s two cousins.

Musk claims that his company’s expansion into residents and business will be revolutionary.

"Our goal is to fundamentally change the way the world uses energy on an extreme scale. The goal is complete transformation of the energy infrastructure of the world," Chief Executive Elon Musk told the press at the event.

For installers, the price of the Powerwall is $3,500 for 10 kWh and $3,000 for 7 kWh, but the inverter and installation cost are not included.

Tesla doesn’t expect a high gross margin in the last quarter, but predicts it will still grow. Deutsche Bank estimates sales of home and business battery systems could yield as much as $4.5 billion for the company. Research firms awaits the energy storage industry to reach $19 billion by 2017.

The Powerwall is around 130 centimeters tall and 86 centimeters wide, weighs 100 kg. It can be installed on walls both inside and outside of homes.

TRTWorld and agencies