Tesla Likely To Face Competition For Its Storage Batteries

Tesla to face tough competition with UET entering the industry with its storage products.

Tesla Motors Inc. is an electric car giant that is one of the prominent automotive brands in United States but since a relatively short span of time, the company is establishing its position as ann energy storage brand. The company recently diversified its portfolio and unveiled a diversified range of lithium ion storage products that can be used for powering household and commercial buildings. At the same time, the company is spending a substantial amount on establishing its first Gigafactory in Nevada.

However at this point the company now has competition at stake since a new startup namely UniEnergy Technologies (UET) powered by a group of scientists and engineers is gearing up to give a tough time. This startup has the backing of United States Energy Department. Thus, the Tesla Powerpack has a strong competitor ready to enter its domain. As reported by Clean Technica, the new company is likely to come up with products that have minute manufacturing costs and better life span.

According to the green energy website, the breakthrough of UET is part and parcel of a smart grid energy storage project situated in the state of Washington that is designed in a manner to consume wind energy resources within the state efficiently.

It needs to be noted here that Tesla’s move to enter the energy storage industry makes certain analysts believe that they could literally supersede the growth of electric cars. However, this has also acquired mix reviews where opinion is at times poles apart. Moreover, those analysts who are skeptical about this venture of Tesla Motors believe that this initiative might have the negligible potential for the firm.

Tesla at this point needs to take several existing and emerging competitors into consideration and if they do not do so then they might just get suppressed.

UET at this point has made several claims regarding its products and if they all are factually true then Tesla might not just be a real rival to them. However, the chief executive officer of Tesla, Mr. Elon Musk holds a relatively different opinion where he claims that his products offer more value than any other competitor in the market.

According to a press release issued by the chief executive officer of UET, “UET is not shy to say it has the best grid-scale energy storage solution at the best-Levelized cost, maximizing value for the customer.”

Hence, Tesla needs to understand that it is not as easy as they might consider it to be and adequate steps to sustain need to be taken.

Bidness Autos - Tesla Has Huge Plans To Carry Out In The Coming Quarters

The auto making company has many plans lined up for the upcoming quarters in which the launch of Model X car and Gigafactory has gone to take place.

In the most recent quarterly report announcement, Tesla Motors was seen to discuss quite a lot of plans for the coming quarters that the firm is looking forward to carrying out. These plans are deemed to be quite important for the company’s performance, as it will determine where and how the firm is headed forward.

The automakers are looking forward for plans such as the launch of the Model X car that is expected to launch in a few months along with the battery making business that the firm has only recently announced to step into. The Gigafactory, which is being established for the purpose of manufacturing batteries for cars as well as home based usage, is in the process of being launched too.

The Model X car, which is the first electric sports utility car that Tesla (TSLA) is currently working on is almost ready for orders and Elon Musk, the CEO of the smart car making firm, expects the customers to be able to place an order for their Model X Cars by July.

However, the electric car will actually be made available in September of the current year when the deliveries will be taking pace. The CEO of the auto making firm has previously been positive about this new venture of his company in the form of the sports car that is to launch soon and he still seems to be quite excited about it. According to him, this sports vehicle is going to prove as a great car in the SUV industry.

As for the Gigafactory that is being worked upon by Tesla, this other venture of the auto giants is to bring about a huge change in the way things are done in the firm. The battery making plant is expected to produce lithium-ion batteries in a massive number, so much as to break all the records of production in the past years. As per the initial plans of the company regarding the launch of the actual battery cell, it was decided that the first cell will be introduced to the industry in 2017.

However, the hybrid car makers have decided to speed up the process as the management mentioned in the earnings call recently made that now the first battery cell will be launched in 2016, one year before.

On the other hand, the demand for the Model S cars has been constantly increasing as discussed by Elon Musk in the earnings call. Tesla is now looking towards selling around 55,000 Model S and Model X cars by the end of the current quarter.