The distributed energy storage market already has many players offering standalone and solar-connected battery systems, so Tesla is certainly not the first to market. However, the electric carmaker can scale its operations in a way that few of its competitors can do, largely through its relationships with Panasonic for lithium-ion cells and SolarCity for solar panels.
Deutsche Bank analysts also said Tesla is using its influence to attract a solid list of partners to help develop, test, market, and distribute the battery products. Partners already include SolarEdge, which makes PV inverters, and Advanced Microgrid Solutions, which installs energy storage systems. Tesla has also partnered with power grid operators OnCor, AES and Southern California Edison.
Deutsche Bank said Tesla has yet to provide "sufficient detail" to validate its battery products, "and the company's initiative is simply too new to gauge the financial/stock implications."
"We nonetheless came away with the view that Tesla Energy is likely to be more significant than investors currently perceive," Deutsche Bank wrote in a research note. "We continue to note that our model and our target for Tesla currently incorporates zero benefit from Tesla Energy."
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