Recently, according to the Telegraph Tesla applies to become UK electricity provider the application was lodged at the end of March with the UK’s gas and electricity market authority to supply any premises in Great Britain. Apart from electric vehicles, Tesla is now all set to enter the British with its technology. Tesla started with the manufacturing of electric vehicles, so they needed batteries thereafter they started producing lithium-ion batteries and after the success of Roadster their first electric car they opened the Gigafactory then solar panels, solar walls and the electricity storage and after successfully solving the power crises in South Australia and then there was no turning back.
Why is Tesla applying as an electricity producer?
Best known for its electric car Elon Musk’s company also makes batteries that store renewable energy on both domestic and industrial scales. Their mission and their strategy are to accelerate the world’s transition into sustainable energy and for this; they are using their factory tech to go bigger and better and the motive behind applying for the license was to introduce the company’s ‘Autobidder’ platform, according to The Telegraph. This would increase the capacity for the customers and the value for the company. A similar kind of thing is working in Australia where the company designed the largest lithium-ion power storage facility in the world, which is capable of storing enough energy to power 30,000 homes.
Tesla has developed software called the Autobidder that allows customers to sell surplus electricity back to the grid automatically. They use the Autobidder in South Australia but it’s not yet clear if they plan to build similar large battery plants in the UK which are required to store the surplus.
“Batteries are highly flexible assets, but they require smart strategies and software to realize their full value,” Autobidder’s website explains. “Autobidder allows owners to realize this value by handling the complex co-optimization required to successfully stack multiple value streams simultaneously.” The process is all going to be based on sustainable energy with solar panels, wind farms which is not clear yet.
How did they get there?
1. The initial stages
Tesla Roadster the company’s first-ever product was due to begin production in September 2007. Musk was initially been led to believe that manufacturing the car would cost $65,000 but an internal audit revealed that the cost climbed to $140,000. It turned out to be a money-loser before even a single car had been delivered. After all, this Musk himself visited the body panel fabricator in England and discovered that the facility didn’t have the right tools to do the job, and Tesla had nothing to show. Later both the founders left the company in 2008 and Michael Marks, stepped in as interim CEO. Marks immediately drew up a list of roadblocks standing in the way of the car being built. The transmission didn’t work, the air-conditioning didn’t work, and the quality of the seats was not reliable and the list kept going on. Meanwhile, a few media and experts were attacking Tesla saying it would fail, commenting Worthless, etc. But Musk wasn’t ready to concede defeat. That’s when he thought that the Combustion engine had made the world dependent on oil, resulting in pollution and climate change. In December 2007, Ze’ev Drori became CEO and president replacing the interim Michael Marks and throughout 2008, Tesla solved the production problems on the Roadster.
2. Finding their way out
But in September 2008 the market crashed. Eventually, Musk took the job and made drastic changes to save the company he cut 25%of the workforce, raised $40 million of debt financing formed a strategic partnership with Daimler by selling them build battery packs and borrowed $465 million from the US government and its on record that Tesla is the only car company to have paid back the loan to the Government. After the success of Roadster, the car aimed then aimed for a wider market but its potential still seemed limited by the high coast of Lithium-ion batteries after all if batteries were too expensive electric vehicles could never compete with the gas and they could never be mainstream.
3. The Gigafactory and the solar city
To combat this in 2013, musk revealed ambition plan the Tesla Gigafactory a massive operation to reach economies of scale in Lithium ion battery production as Tesla built its Giga factory it hit many other milestones the power wall was revealed a lithium ion battery for the home. Soon Tesla was not just an automobile company anymore it became an all-around sustainable energy firm when solar city merged with Tesla in 2016 adding several additional product lines to its offerings Tesla solar roofs, energy storage electric energy and Tesla homes Tesla’s solar panels and roofs to convert sunlight’s energy and Tesla’s power walls to store the energy all of this will happen in a Tesla home which will have 24*7 access to backup power and the idea is to use the sunlight as the primary source of energy.
4. The expansion to other countries
Besides home products, Tesla is one of the most innovative companies when it comes to huge power or storage installations. The company’s involvement in Australia, and Puerto Rico in recent electricity blackouts. Tesla builds these huge batteries to store energy generated by solar panels wind farms or other renewable sources. In Australia, the World’s largest lithium ion battery installed by Tesla of an area of a size of a football field and wind farms is saving consumers millions of dollars.
The way Tesla sees the future
It is not perceived as a giant corporation that puts profit above all. The company’s business allows Tesla to recruit some of the best engineers that are making a real difference and all this helps Tesla win customers who are sensitive to environmental issues.
Also, the cost of battery storage keep will be falling and at a certain point in time, this will allow for massive growth in revenue as technology becomes more and more accessible. The way Tesla sees the future is to have homes that are equipped with solar panels and solar roofs and batteries store the energy that has been generated during the day and allow the storage to be used at night. Not only has to accelerate the world’s transition to sustainable transport but to accelerate the world’s transition to sustainable energy.
The common denominator is sustainability and this is the main reason why people and so excited about the company’s products.
Tesla, Beijing Electric Vehicles, BYD and Nissan and many other companies are now manufacturing electric vehicles and the electric drive isn’t confined to personal vehicles but to electric tuk-tuks and minicabs, hoverboards and segways are also popping up all over the world, But with more electric vehicles we are going to need infrastructure to charge them. Also, as the electric industry grows, more talent and resources will be required. However, if everything goes well soon the cost of electric vehicles will be equal to the coast of a petrol-driven vehicle. As there are more players and more solutions, we can expect more diversity, innovation, and infrastructure which means we might be plugging into an electric city of the future sooner than we think.