Submitted by bb0tin on Thu, 2016-06-23 03:02
I have just finished listening to the conference call for the proposed acquisition of Solar City by Tesla. Listening carefully to what Elon said, and reading between the lines with my jaundiced viewpoint, I believe the following is true. This is a rehash of my thoughts posted a couple of weeks ago but I feel even more confident about them now.
Tesla will try, and largely succeed, in selling solar and storage with each Model 3 because of the overwhelming cost benefit to the consumer. This is because the gigafactory for solar panels will provide low cost and visually attractive solar, the gigafactory for PowerWalls will provide low cost storage, and the combination of currently separate physical components and wiring will provide the lowest cost system available.
The solar DC-AC inverter, PowerWall and HPWC will be combined into one unit with only one AC connection to the house wiring.
The Model 3 will allow vehicle to Powerwall, but not vehicle to grid. The marginal cost of 6kWh of storage cost will be less than the current $US3000 and will include installation. This means that the end user can become mostly self-sufficient in power, and totally off-grid if they choose, far cheaper than they can currently.
From the statements that Elon made today, I believe Tesla is now moving into expanding as rapidly as possible in solar, storage and cars. They will only be restricted by their physical ability to expand, plus a year or two to prove out their giga scale production of solar, storage and cars, before replicating it.
Elon understands that Tesla will be the leader in all 3 areas. Elon understands that the near to medium term markets for all 3 are enormous. Elon understands the dire need for the immediate and large scale move away from fossil fuels. Elon understands that other companies are not stepping up to the plate. Tesla will be the largest company in the world within 10 years and we will have a better future for humanity because of it.
PS: It appeared that most analysts on the conference call just do not get it. They are focused on the short term financial aspect rather than the medium and long term benefits.