Tesla Motors Inc (NASDAQ:TSLA) made their entry into the energy market by introducing it’s brand new home battery. Tesla Motors Inc (NASDAQ:TSLA)’s CEO Elon Musk claimed that these batteries are one of a kind that can store power generated by solar cells or wind mills and power the houses up to 10 hours. There are other similar products from companies like Enphase Energy Inc (NASDAQ:ENPH). But how Musk claims that Tesla Motors Inc (NASDAQ:TSLA)’s product is way ahead of others? Northland Capital Market’s Senior Research Analyst, Colin Rusch talked on CNBC about Tesla Motors Inc (NASDAQ:TSLA)’s home batteries and discussed about other similar products from other companies.
The main talking point about Tesla’s home battery is the price tag that it carries along with it. Many feels that selling these batteries at $3500 is a break through. But Rusch said that there are batteries from other competitors like Samsung SDI with almost similar price tags. He pointed out that inverters and software are the other key features to the application of these batteries. He thinks that the way these batteries can be commercialized will decide its success.
Elon Musk claimed that other battery system from competitors suck. But do they really suck? Rusch thinks that there are other battery systems which are far more flexible than Tesla’s batteries.
“There is a company called Enphase, which makes micro inverters, that has introduced a battery system, that’s actually a little bit more flexible and more modular and actually I think easier to use that what we have seen from Tesla. So what Elon was talking about other battery systems sucking. I think he was just wrong. I think there is actually some decent solutions out there that are a little bit more effective than what they have put out there,” Rusch said.
Rusch pointed out that there are worthy competitors for Tesla’s battery product. He also thinks that Tesla has under estimated some of these competitors including Enphase. He feels that the new battery system product from Enphase is a little bit more flexible and easier to use when compared to Tesla’s battery.
But, what about the size aspect of the batteries? Tesla claimed that these batteries are as big as an air-conditioner, which many people feel as an added advantage to this product.
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