Insights

Why Tesla put the pedal to the metal on Monday

Does Tesla want to be an electric utility when it grows up?
The post Why Tesla put the pedal to the metal on Monday appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of electric car superstar Tesla (NASDAQ: TSLA) accelerated 2.5% as of 12:10 p.m. EDT Monday, continuing a winning spurt that began late last week.

As CNBC reported, on Thursday Tesla’s Tesla Energy Ventures subsidiary applied to the Texas Public Utility Commission to “sell electricity directly to customers in Texas.”  

So what

As you’ve probably heard, Tesla has been building a global business in the new field of battery warehouses, setting up electricity storage facilities in Australia, Belgium, and California. In Texas, it’s building two more battery facilities — one near Houston and another near Austin — totaling hundreds of megawatts of capacity.  

This seems somewhat different from that.

Rather than just storing electricity produced by other companies, and feeding it back into the grid as needed to prevent blackouts and brownouts, Tesla’s new license would authorize it to produce and sell electricity directly to consumers, utilizing a sales force shared with the Tesla division that sells home solar roofs.

Now what

It’s not 100% clear how Tesla intends to produce the electricity that it wants to sell — whether through solar panels (the logical conclusion), or windmills (very popular in Texas), or cogeneration of electricity at its Austin gigafactory.

For that matter, Tesla might only be planning to buy electricity when it’s cheap, store it in its battery warehouse, and then resell the power whenever it’s dear. We simply don’t know. (TexasMonthly, which first reported on Tesla’s application, laments simply that “details … are scant.”)

What is clear is that Tesla is growing and expanding into new markets once again. For investors today, that seems to be plenty to send Tesla shares higher.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla put the pedal to the metal on Monday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tesla right now?

Before you consider Tesla, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tesla wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Is Tesla Bot a catalyst for Tesla stock?

Why Tesla stock jumped on Monday

2 big revelations from Tesla’s AI Day event

Up 50% in a month! Bitcoin is back over US$50,000

Will the ASX 200 follow the S&P 500 to double its March 2020 lows?

Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!