• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 7 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 7 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 7 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 6 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 7 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Iron Ore Prices Rise as China Ramps Up Imports

Iron Ore Prices Rise as China Ramps Up Imports

Despite challenges like the Evergrande…

Elon Musk Bullish On Tesla’s Energy Business

Tesla’s energy business could end up being bigger than its core business of making electric cars, CEO Elon Musk said during the presentation of the company’s third-quarter results, which surprised most by being positive.

Tesla’s solar business has not been faring particularly well recently, with sales falling despite efforts to prop them up.

Its other energy business, however, including energy storage and related services, seems to be doing better even though it remains a relatively small contributor to overall revenues.

Tesla reported total revenues of $6.3 billion for the third quarter. Of this, car revenues came in at $5.35 billion. This means energy products and services, including solar, contributed around $950 million to the overall result.

In its report of Tesla’s results, TechCrunch noted that the company had been neglecting its energy business over the last two years as it doubled down on its ambition to become the first maker of an affordable luxury car, the Model 3. Battery cell production lines were repurposed for car batteries from the Powerwall and Powerpack, and resources were poured into the Model 3 at the expense of the energy business.

Musk has admitted that was a desperate move to keep Tesla afloat.

“We had to do it because if we didn’t solve the Model 3, Tesla wouldn’t survived,” he said. “So, unfortunately that shorted other parts of the company.”

Russia Predicts The Death Of U.S. Shale

Now, it seems the sacrifices for the Model 3 are beginning to pay off and Tesla can redirect resources once again, only in the opposite direction.

If we are to judge by the solar division’s performance, this redirection has already started. During the third quarter, Tesla installed 43 MW of solar capacity, up from an all-time low of 29 MW in the second quarter. Although the figure is still 54 percent lower than the capacity installed in Q3 2018, a quarterly increase is good news.

ADVERTISEMENT

Storage capacity has continued to grow steadily. In Q3, Tesla reported 477 MWh of storage, which was 15 percent higher on a quarterly basis and a whopping 99 percent higher on an annual basis. Now, it’s a question of scaling the energy business up, according to Musk. This, it seems, will begin with the launch of third-generation solar roof tiles later this week.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News