Is Elon Doing An End Run Around Electric Utility Companies?

elon-muskNot sure if you spotted that Elon is seeking to merge Tesla and Solar City, which has been met with all kinds of commentary. If you read the mainstream press can be summarized with a single comment … “It’s official - Elon is off his trolley.”

Separately I recall seeing somewhere that Elon himself has seen that exact kind of commentary form Financial watchers - and totally opposite comments from ‘Product people’.

I found this to be a fascinating article:

If Tesla City can reduce the cost of making a house-powering battery to just $640—some analysts believe it’s possible—then every Solar City installation can be both a power plant and a storage system. And if the battery pack is key to the economics and not just a bonus, why not bring the companies together in more than a partnership?

Absolutely in line with my thinking that Tesla is a battery company - not a car company. Not only that but at a stroke he closes the loop - and doesn’t seem to need the likes of PG and E.

What am I missing? More importantly what are the nay sayers missing?

July 6, 2016