tesla ceo: demand for batteries is \'overwhelming, like crazy\'

Tesla and SolarCity, both planning to sell Tesla\'s battery packs for homes and businesses, said on Wednesday that they saw huge demand for energy storage devices that were only announced last Thursday.
Tesla CEO Elon Musk said Tesla has received 38,000 home battery pack orders, called Powerwall, and 2,500 large system orders for the enterprise, on the phone to discuss the company\'s first issue
Quarterly earnings.
\"The response is overwhelming, like crazy,\" Musk said . \".
\"By the middle of next year, we are basically sold out.
\"It has become super viral,\" he added . \".
Jonathan Bass, spokesman for SolarCity, said the launch of the battery led the company to receive more customer inquiries last Saturday than ever before --
Although he declined to disclose the figure, it was a day in the company\'s history.
Tesla\'s battery system for homes, businesses and utilities is full of enthusiasm, which is understandable.
Battery system engineering and management has always been part of the company\'s core technology.
Therefore, Tesla can use this expertise to enter the emerging energy storage market, in which batteries are used to store solar energy for later use as backup power systems, help businesses avoid paying high fees at certain times of the day, and enable utilities to balance supply and demand and maintain the health of the grid.
Thanks to regulations promoting energy storage and the continued decline in battery prices, the market seems hopeful.
Tesla\'s rise has also attracted investors and the public, which has exacerbated
Car market.
Musk and his team have overcome difficult engineering and financial challenges.
He has almost no money.
Make Tesla and launch beautiful electric cars.
Musk is a good performer.
In addition, Tesla is spending $5 billion to build a giva-
The scale of the battery factory in Nevada, and hope to diversify the business.
Musk said that over time, demand for energy storage may double the demand for Tesla\'s car market.
For Tesla, the initial strong demand for battery systems is huge.
It just needs to deliver these systems as promised, which is not easy.
The company plans to produce a limited number of battery packs at the Fremont plant this year and switch to the new Nevada plant next year.
Can it increase production smoothly?
It draws some good manufacturing experience from using Panasonic batteries to make cars and car battery packs.
But in the new factory, Panasonic is working on something bigger.
Tesla is offering lithium.
Very attractive ion battery system for the price.
7 KW-
Hours and 10 KW-hour, wall-
It installed packaging for the home, offering wholesale of $3,500 and $3,000 respectively.
For systems offered by other manufacturers, these prices fall within the lower price range.
The price is for the battery pack only.
If you just want to have a battery pack then you need to buy an inverter to convert DC (DC)
From battery pack to AC (AC).
If you happen to live in an area with this policy, this will allow you to use electricity at home or send it to the grid to get points from your utilities.
Tesla is trying to reduce the need for additional inverters that only serve the battery pack.
It is necessary to install a battery system to store the energy of the solar panels, as inverter manufacturers do not always design their products to use both devices.
Tesla\'s older battery system needs its own inverter.
Since 2013, the company has sold hundreds of vehicles mainly through SolarCity to test its battery system design.
For each new battery system, Tesla includes DC (DC)
The converter, can work with the same inverter that provides services for solar panels.
Using only one inverter and engineering improvements to the battery pack means cash purchase 10-
The kWh system for SolarCity customers is now down 60% from $18,000 to $7,140, including installation, Bass said.
SolarCity also offers 9-
Annual lease for customers who want to buy 10-
KWh system with solar panels. That 9-
Bass said that a one-year lease brought buyers an upfront cost of $5,000, and the length of the contract reflected SolarCity\'s warranty on the battery system.
Bundling the battery with solar power allows its owner to deduct a 30% federal investment tax credit from the total cost of the combined system. A stand-
Buying batteries separately is not of high quality for tax credits.
Solar installers plan to provide only 10-
The first is the kWh system because it believes that the scale will initially receive a larger demand.
The plan is to first sell the battery pack used as a backup power supply, and 10-
Buss said that the kWh system is more about supplying power when there is a power outage.
Average household consumption in the United States is about 30 KWhours per day.
Tesla design 7-
KWh system for daily battery charging and discharge.
It allows homeowners to store solar energy for evening use, or when the price is low, they can store electricity from the grid, and when the price is high, they can use the stored electricity.
But this dynamic use of the battery system does not save customers in most parts of the United States, because residential electricity prices will not vary greatly during different times of the day.
Electricity for your local utilities will be cheaper at night, so using solar energy at night will not save you money.
Homeowners who receive retail credit by sending excess solar energy to the grid during the day may find it more economical to continue doing so than storing it for night use. Musk said 7-
The KWh system may attract those who are primarily interested in getting out of the grid rather than getting a return on investment.
Tesla also designed a 100-
KWh system for utility customers.
Tesla plans to charge a wholesale price of $250 per kilowatt
Battery only one hour, $500 per kilowatt
A Tesla spokesman said it would take an hour for systems including power electronics, thermal control equipment and software.
The price of the whole system should drop to less than $300 per kilowatt.
When the new factory reached full capacity production in 2020.