According to Elon Musk's tweet, the powerpack will be prices at $250 KwH. Is this a game changing price?
Seeing as how the Tesla Energy margins were over -25% in the 4th quarter, before adding in SG&A expenses, it certainly has the potential to be game changing all right.
Selling far below cost would generate business no doubt, as well as eventual bankruptcy. So that's the thing....
Tesla ramping up a $5B factory in Sparks Nevada capable of 150GWh/year of production might show low margins when production starts to ramp.
100-300MWh projects completed in 100 days means that Sparks Gigafactory is ramping and will soon be absolutely disrupting the energy provision markets.
No more coal plants.
No more NG peaker plants.
And Tesla can tightly integrated with multiple variable production renewable energy sources from home rooftop solar to industrial wind.
2015, Tesla stated that their per kW cost was under $190 and that Gigafactory economies of scale in 2020 would reduce prices at least 30% and 2025 with production costs under $100/kW.
Here it is, straight from @ElonMusk Twitter feed:
Mike Cannon-Brookes - @mcannonbrookes Mar 9 @elonmusk legend! ☀️ You’re on mate. Give me 7 days to try sort out politics & funding. DM me a quote for approx 100MW cost - mates rates!
Elon Musk - "$250/kWh at the pack level for 100MWh+ systems. Tesla is moving to fixed and open pricing and terms for all products."
shails - Mar 9 @elonmusk is this global price?
Elon Musk - Yes, but shipping, taxes/tariffs and installation labor vary by country, as those costs are beyond our control
I will be taking a tour of the Gigafactory next Thursday (if you give enough money to the National Auto Museum, you get invited to all kinds of cool stuff) and will report back here. Cameras are prohibited, but I'll try to remember any production numbers I hear.
Thanks, @Dramsey! Enjoy.
The only electric power plant bids for the last 2 years in US are either wind or solar.
It may be the same world wide. Even in Dubai.
Economics are that wind and solar are the cheapest (fuels cost zero) for utility electric production.
Nukes are only built to steal public money and to supply plutonium for bomb making.
California has only one Atomic Power Plant left - Diablo Canyon (near 7 fault lines, so pray no big quakes before it closes down - not sure of Tsunami threat (how close to sea level?).
CA may only have 1 nuclear plant left - but at the very least they own about 27% of output of the nation's largest nuclear power plant, Palo Verde, outside of Phoenix.
When Diablo canyon shuts down in a few years Californians can be proud to import more coal power from neighboring states.
@McLary: Reality says renewables will pick up the slack.
By the way, you'd be a perfect investor in residential real estate a couple of miles from Diablo. It might bring a healthy glow to your dim views.
When Diablo Canyon shuts down, more solar panels/roofs and batteries will be installed and California will continue it's goal toward 100% renewable energy.
There. Fixed it for you.