TESLA AND THE ENERGY MARKET

I still consider it somewhat ironic that this is the case considering the real Tesla’s personal work, motives, and desires regarding energy distribution. Still, it is definitely a step in the right direction.

Will Tesla’s Battery for Homes Change the Energy Market?

Tesla did not reveal the price of its larger batteries for businesses and utilities, but it will sell residential models for $3,000—$3,500


Credit: Tesla

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Tesla Motors, the electric-car maker based in Palo Alto, California, has announced that it will sell versions of its battery packs directly to consumers to help to power their homes, as well as to businesses that run larger facilities, and utility companies.

At a press conference in Los Angeles on April 30, the company’s charismatic founder Elon Musk said that the firm’s lithium-ion batteries would enable economies to move to low-carbon energy sources. Solar energy sources are erratic—but by storing their energy and then releasing it when required, batteries could solve that problem, he said.

Many other companies also sell stationary battery storage for buildings and for power grids—but analysts say that the technology is still too expensive for widespread use. Here, Nature explores whether Tesla’s announcement might change the game.

Has Tesla just invented a new battery technology?
No. The company’s packs contain standard lithium-ion batteries based on tried-and-tested technology, which are similar to those that many other firms have on the market.

Although companies and academic labs are pouring billions of dollars into research and development to significantly increase the amount of energy that batteries can store and to lower their cost, it could take years before significant breakthroughs reach the market (see ‘The rechargeable revolution: A better battery’).

Has Tesla managed to cut the cost of battery storage?
Possibly—but it’s unclear. Cosmin Laslau, an analyst for Lux Research, a consulting company in Boston, Massachusetts, says that he thinks Tesla’s batteries may be a bit cheaper than their competitors, although not by a lot.

Tesla did not reveal the price of its larger batteries for businesses and utilities, but it will sell residential models for US$3,000—3,500, or a cost of about $350 per kilowatt-hour (kWh) of energy stored. But that price tag does not include electronics that are required for connecting a battery to a home system, nor installation costs. Together, these costs could more than double the final price for residential consumers.

The internal production cost of lithium-ion battery cells (the cylindrical elements that store energy inside a battery, and which Tesla buys from Japanese electronics giant Panasonic) is generally thought to be around $200 per kWh, according to Mohamed Alamgir, director of research at LG Chem Power in Troy, Michigan, a subsidiary of the South Korean chemistry giant LG Chem. Incorporating those cells into a battery pack typically doubles costs, so that a battery the size of Tesla’s could cost about $4,000 to produce. Tesla could be selling these products at a loss for the time being, says Laslau, but could turn that loss into a profit once it scales up production at the $5-billion battery ‘gigafactory’ it is building in Nevada.

Does a home need a battery?
Most homes in the Western world probably do not. In places that have a good connection to the electricity grid, and where grid power is reliable, households do not need batteries for backup. And even those homes that have solar panels on the roof and extra energy to spare can use the grid itself as their battery: in many places, such as Germany and several US states, homeowners can sell their excess power during the day to the local electricity utility, and buy it back at night.

But the world’s electricity utilities and power grids themselves need more inexpensive energy storage. Countries that have been aggressively installing solar panels and wind turbines but that have not invested enough in energy storage have had trouble integrating the extra capacity into their grids. Germany, for example, has provided lavish subsidies for homeowners who installed solar panels, but when residents installed more photovoltaics than expected, electricity utilities had to spend more to keep the grid running smoothly, says Haresh Kamath, an energy-storage expert at the Electric Power Research Institute in Palo Alto. “The effects of unplanned deployment can be dangerous in terms of grid reliability,” he says.

Could today’s lithium-ion batteries meet utility firms’ needs?
When utilities need to manage loads on the grid, it is still cheaper for them to fire up gas turbines. The US Department of Energy estimates that for energy storage to be competitive, it must not cost much more than $150 per kWh. Assuming a cost of $700 per kWh, Tesla’s systems are still much more expensive than that. Right now, the cheapest way to store energy is to pump it uphill into a hydropower reservoir—where one is available. The next-best storage solution is to compress air in large underground reservoirs.

But even if they cannot economically store hours’ worth of a country’s energy needs, batteries can help to make the grid more reliable. And the US energy department’s target does not take into account the social costs of carbon emissions, says Jeff Dahn, a battery researcher at Dalhousie University in Halifax, Canada. “If there was an appropriate price associated with the generation of carbon, we’d all be using solar panels and paying whatever it costs to store electricity,” he says.

This article is reproduced with permission and was first published on May 1, 2015.

THE STRUGGLE IS THE ACHIEVEMENT

Hiring Rule: How Elon Musk Screens for Real Experience

The best employees will be able to easily recall their struggles, says SpaceX’s CEO.

IMAGE: Getty Images

If your company frequently runs into complex-problem issues, it helps to be surrounded by a team of experienced problem solvers.

While that might sound overly obvious, the hard part is detecting this skill during the hiring process. You’ll want to make sure that your employees have cracked tough codes by themselves–not just by blindly following someone else’s instructions, says Tesla Motors and SpaceX CEO Elon Musk.

That’s why, as a hiring rule, Musk asks job candidates to recall a problem they solved. Then he has them explain how they arrived at each and every step, up until the solution.

“If someone was really the person that solved it, they’ll be able to answer multiple levels. They’ll be able to go down to the brass tacks,” Musk said in an interview at Ignition, an annual Business Insider event. “Anyone who’s struggled hard with a problem never forgets it.”

Note that when a candidate says he or she was able to arrive at a conclusion by asking someone else or consulting a book, that’s a perfectly acceptable answer. Musk said this is exactly how he’s been studying rocket science for more than a decade. The grueling process has made him more confident in his abilities.

When you struggle with a problem, that’s when you understand it,” he said.

Published on: Mar 31, 2015

ELON’S LOSS

​Elon Musk Lost About $1 Billion In Two Weeks

​Elon Musk Lost About $1 Billion In Two Weeks123456

Low oil prices and cheap gas are cutting into the demand for electric cars and solar power, if analysts are to be believed. That’s no good if you’re the largest shareholder of Tesla and SolarCity, and some back of the napkin math says Musk’s pocket is about $1 billion lighter.
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Musk owns over 28 million shares in Tesla, which peaked at around $284 in September and is now floating around $200 today. He also owns almost 21 million shares of Solar City, which topped out in February at $86 and is trading today at just over $50.89

According to Marketwatch:

On Nov. 26, the day before a decision by the Organization of the Petroleum Exporting Countries to stand pat on production suggested the group preferred to defend its market share than try to support prices by cutting output, Musk’s combined Tesla and SolarCity holdings were valued at around $8.2 billion. They are now more like $7 billion.

Since that OPEC meeting, Tesla shares declined 16 percent and Solar City dropped by 11 percent, and it’s even lower now. But really, what’s a few hundred million between billionaires?10

THE FUTURE

Indeed.

This May Well Be The Coolest Feature On The New Tesla

Elon Musk is touting one incredibly futuristic option on the new Tesla.

Produced by Matt Johnston and Alex Kuzoian.
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