all this battery hype should make tesla investors nervous - home battery system

Elon Musk is a talented marketer.
His and Tesla's hype and hype around their new Powerwall battery system is amazing.
Tesla battery is considered a breakthrough and game-changing battery.
The company is promoting pre-38,000 batteryorders.
It doesn't matter. interested customers don't put money or have the obligation to buy it.
Some think Tesla has won the competition for home batteries.
All this before they start selling-
Not to mention making profits.
Given all the hustle and bustle, and Tesla's crazy $30 billion market capitalization, you can think that the company invented lithium-ion batteries.
"We can't meet this year's demand," Musk told analysts last week . ".
"It's crazy.
One analyst asked Musk if Tesla would transition from a car company to a battery maker?
"This is possible," he replied . "
"What we know now is that our demand is far faster than our production speed.
"It may be possible, but given the increasing wave of battery competition, it is not possible.
In fact, it's not even smart.
Investors should be nervous to hear Musk's view of turning Tesla's focus to batteries.
Tesla's supporters are trying to prove that their company is different from all its competitors because it makes products as beautiful and well-designed as those made by Apple.
Beautiful engineering and perfect human-computer interaction are of course important for cars.
The user interface is important in many devices and appliances such as smartphones, computers, televisions, refrigerators, microwaves, etc.
You are willing to pay more for what you use.
But the backup battery system?
This should be something that sits in the clothes and can work seamlessly with the rest of your home power system.
Like a water heater.
There should be no reason to see it, let alone interact with it.
The battery system may be expensive today, (
Despite Musk's Flash)
It's not a high-end consumer product compared to an iPhone or a Tesla car.
On the contrary, the battery system will soon become commercialized considering all the competition, and manufacturers will have to settle for the profit of the goods.
In fact, Tesla does not make its own batteries.
This work begins with Panasonic, a global leader in battery manufacturing for electric vehicles.
At the Gigabit plant in Nevada, Panasonic will make personal batteries in about half of the space there, then hand them over to Tesla and pack them into finished batteries ---
Either installed on the car or in the beautiful box of Powerwall.
Profits can be made if power walls and utilities are sold --
A large part of the battery will accumulate to Panasonic.
Again, you will think from all the hype that no one else in the world has done such a thing.
But Panasonic has a lot of competition with AESC, LG Chem, BYD, Samsung and others.
The gigabit factory will not be unique.
BYD, China Electric Vehicle manufacturer (
It represents your dream)
It is building its own battery plant, which will compete with the Gigabit plant.
BYD is backed by more successful billionaires than Elon Musk, Warren Buffett, and his Berkshire Hathaway, which owns about 9% of BYD.
And Samsung SDI, which makes batteries for BMW, Chrysler and Audi (
Including the planned 300-mile range SUV)
It is said that it is building its own giant factory.
Samsung has also been working with Ford to develop a new hybrid battery that combines lithium batteries. ion and lead-
Acid technology.
In February, Samsung acquired the battery pack business of Magna Steyr.
Does anyone really believe that these global battery giants will not be able to make batteries and battery packs as efficiently as Tesla and Panasonic do in Nevada?
What if Panasonic/Tesla can't keep up with innovation?
In recent months, Nissan has announced plans to cut battery production at the joint venture, AESC.
The electric leaves did not meet expectations.
Fixed energy storage business--
Tesla was not invented.
Power plant giant AES is already providing batteries-
Energy storage projects like the 100 MW power plant it built for Southern California Edison.
For its system, AES says it uses the best and most cost-effective
So far, it can find effective technology, the battery made by LG Chem and Samsung.
LG Chem also provided 32 megawatt-hour batteries for the Southern California Edison project.
Panasonic/Tesla's batteries may also meet this requirement, but they obviously have to compete on the price.
Devices like Powerwall are also competing.
It didn't get much attention, but a few weeks ago LG Chem also announced its entry into the home battery market through a joint venture with Eguana Technologies.
LG says it has sold 4,000 electric networks.
In the past 18 months, the battery system has entered the European market.
A few years ago, the German appliance giant Bosch began offering homeowners a lithium-
Ion batteries and DC-AC inverter.
A box as big as a refrigerator looks attractive.
As far as I know, the system costs up to $7 KW at about 20,000 hours-
Before tax breaks
This is about three times what SolarCity says about installing Tesla Powerwall of the same size.
But that's in line with the cost of SolarCity told California regulators last year to install 5kw home battery systems.
The masses were shocked that Powerwall was so "cheap ---
Although $3,500 for the 10kw system is just wholesale costs, SolarCity says you can buy one for $7,000, despite the average solar energy-
It may take two at the Power house to have enough juice to be completely out of the grid.
Can Tesla sell Powerballs for $3,500? Probably not.
But they are used to it.
Dividing Tesla's $0. 15 billion loss in the first quarter by the 10,000 cars they sold, the company lost $15,000 a car.
Of course, Tesla's growth rate is fast and its output is also increasing, so losses are expected at present.
But at least one day its vehicles should be able to get higher
High quality-
A steady profit margin.
Musk does try to make Powerwall sexy, but in the end it won't be seen as more sexy than a water heater or air conditioner ---
Generate the same commodity pricing and commodity profits.