Elon Musk has unveiled his long-awaited storage batteries for the home and the electric grid. They look cool, but will they sell?
Tesla seems to think so. The company is ramping up hiring for the storage business and telling applicants that the unit will generate billions in annual revenue "in the near term."
The battery storage market is growing rapidly, but it's still a tiny industry with lots of emerging competition for Tesla coming from China, Japan, South Korea, and elsewhere. By 2020, the worldwide investment for stationary-grid energy storage will be $5.1 billion a year, more than 17 times higher than investments in 2013, according to a June 2014 BNEF report.
Since Musk tweeted about the battery event on March 30, Tesla's stock has climbed more than 20 percent—adding roughly $6 billion to the company's market value.
A Deutsche Bank report from February was bullish on the industry. "Batteries delivered at an economically competitive price are the holy grail of solar penetration, and we believe the industry will begin deploying on a large scale within the next 5 years or less."
With assistance from Dana Hull in San Francisco.
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