From cars to homes: Tesla's move to power society

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Chief executive of Tesla Motors, Inc., Elon Musk, recently announced the company’s intention to expand its capabilities into the home market. In several tweets and reports, Musk revealed Tesla Energy – a branch of the business that will manufacture storage systems or batteries for homes, companies, and utilities. This new line of products, many financial experts agree, is Tesla’s attempt to capitalize on the ever-growing and rapid energy sector.

The need for alternative energy sources has been strengthening over the last few years. What with several politicians, celebrities, scientists, and other personalities calling for reduced dependence on fossil fuels, Tesla’s transition into the energy industry could not have come at a better time. According to Musk, the company’s goal is to "fundamentally change the way the world uses energy on an extreme scale." Tesla’s solution involves self-sustaining storage batteries that work with solar panels. The smallest unit, called the Powerwall, is a mere six-inches, and is hung inside a person’s garage or within the outer perimeters of the house.

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Tesla’s announcement has several implications in the global and local market. For one, many enterprises are now seeing the necessity to move into this industry as well; or begin amplifying their own power sources so that their production or management of their headquarters becomes energy-friendly. Second, many oil and gas companies are slowly feeling the effects of dwindling demand for fossil fuel sources. Recent reports suggest that oil output will reach a plateau in five years – with negligible growth over the same time period. This, combined with the move to make alternative energy sources (particularly solar power) more affordable and easier to harness, has caused many companies to worry about the future of their revenues.

Image Source: reuters.com