Tesla Motors Inc (TSLA)’s Battery Swap Station: A Grave Threat For Traditional Automakers

Tesla Motors Inc (NASDAQ:TSLA) has it up and running in California now, and even though this is only a beta version, this battery swap station will be remembered forever as the cornerstone for the automotive industry overhaul.

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On CNBC, Phil LeBeau reported on this new feat that Tesla Motors Inc (NASDAQ:TSLA)’s CEO has been able to achieve.

“[…] Remember, about a year and a half ago, Elon Musk said that these were going to be the future for Tesla, at least part of the future where you drive in your model S and in 90 seconds a robotic arms comes from up underneath your model S, takes out your old depleted battery and 90 seconds later you got a fully charged one. This is going to be operating in California […],” reported LeBeau.

The edge that this new technology provides the luxury end electric car maker is extraordinary. In fact, I believe that for Tesla Motors Inc (NASDAQ:TSLA) this is even bigger than launching a new model. LeBeau expanded on what this means for not only Tesla, but the entire electric car industry as a whole.

“[…] There is Elon Musk’s tweet saying you can visit and get a battery faster than it would take to fill up at the gas station. The significance, as you look at shares of Tesla Motors Inc (NASDAQ:TSLA), keep in mind that if they can put a lot of these battery swap stations around the country, in the future, theoretically this eliminates the aspect of people saying, look it is quicker to fill up at a gas station than it is to wait for a recharge,” said LeBeau.

Tesla Motors Inc (NASDAQ:TSLA) has been trading poorly this month and this provides an excellent opportunity to enter for investors who believe in the company’s story.


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