Tesla’s latest ambition is bigger than electric cars. The company wants to transform into a sustainable energy organization. While Wall Street continues to remain uncertain about the success of this plan, Tesla is making its baby steps. Thus, the company has already managed to find a real use for its innovative industrial power packs. For instance, a new solar power plant in Hawaii works on Tesla products.
The Kauai Island Utility Cooperative, which is KIUC for short, turned to Tesla for help with sustainable energy production. This is how 272 Tesla power packs ended up loading the new Hawaiian solar power plant. This innovative technology helps the island to rely on clean energy 100% of the time. Back days, the island could use solar power only during the day. However, Tesla helps the community enjoying renewable energy even after the sun comes down. Its battery packs work as energy deposits that people can take advantage of at night.
The Kauai Island is content with this upgrade to an environmental friendly market. Beside the low impact on the medium, Tesla announced that the costs would be lower as well. For instance, one-kilowatt hour will no longer cost 13.9 cents, but 15.5 cents. Moreover, the price will not fluctuate for the following 20 years like diesel fuel usually does. This is one of the strong points of Tesla’s energy system.
On the other hand, analysts at Wall Street do not see this company transformation with good eyes. Adam Jonas worked for Morgan Stanley and explained to investors the situation. First of all, the clean energy is still a shaking domain as far as regulations are concerned. The lawmakers have still not given a definite classification of the energy business. The solar business is the most problematic segment of this domain. On the other hand, analysts are still skeptic about the economic impact such an energy company could make.
As a response to this aloof attitude, the chief technical officer at Tesla, JB Straubel, took the criticism as precocious behavior towards the birth of a new market. He stated that given this situation where everything is new, it is difficult to project the outcomes in the future. Given the lack of history, analysts have no proven factors on which to base their reviews.
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