Why is Tesla set to be the largest in terms of Energy Efficiency

Tesla is set to become a large player globally in terms of energy efficiency. The fact is evident by the company’s action of dropping “Motors” from its website and renaming it as Tesla.com ten days ago. Tesla sees itself more than a car company today. Ten years ago the firm had an ambition to manufacture electric cars – first in the expensive zone, later in a medium zone and finally an affordable one.

Read all about Electric Cars here.

This looks to be somewhat true now. The company under Elon Musk has delivered what it promised a decade ago. Now he has even more ambitious and cleaner “Master Plan, Part Deux”. Keeping the sustainability issues at hand, Musk listed out four important points that embodies his plan:

• To create integrated solar-plus-battery-storage products.
• To modify the electric vehicle product line for all major segments
• To develop self driven cars, having enhanced safety features
• These cars will not only be safe for the owner, but will also make him money on a car-sharing basis.

The reason I think why Tesla could be the largest in terms of energy efficiency is because Elon Musk is thinking of changing the way people will consume energy in the future. Not only this, if he does what he claims (and this he has very well achieved in the past) it could revolutionize the whole energy consumption pattern around the globe. According to him the cost of batteries that constitute almost 33% of the electric vehicle’s total cost is set to decline at an increasing pace. The prices are expected to drop to $100/kWh by 2020, from an average price of $1,200 in 2010. The dynamics are changing, owing to the availability of cheap materials, automation and better supply chain.

Tesla’s Powerwall has been revolutionary in home energy solution. US consumers got electricity from the power grid for 12.5 cents/kWh on average.

Also read India entices Tesla to set up a factory under Make in India.

The large Gigafactory that Tesla is building in Nevada is designed in a way that it will drive maximum power from solar energy. There is no diesel generator for backup power. This Gigafactory is aiming at producing 500,000 cars in 2018 ahead of its schedule time.

Image Credit: Treehugger

Tesla also made a proposal to buy SolarCity in the last month, which could possibly make it the largest clean energy company. It could be a win-win situation for both, as Tesla could benefit from SolarCity’s residential customer list and SolarCity could use Tesla’s expertise in technology and innovation to shine further.