Tesla Motors, Inc. (NASDAQ:TSLA)’s Battery Stations will Debut in California in December

252

Tesla Motors, Inc. (NASDAQ:TSLA) has finally announced that the company’s much hyped and awaited battery stations will make their debut in California in December.

Elon Musk Tesla Motors, Inc. (NASDAQ:TSLA)’s CEO along with his crew unveiled the battery station more than a year ago before a huge crowd. They demonstrated the speed with which the battery of Model S can be changed; the battery can be changed only in half the time a regular car’s gas tank takes to fill up. However after that grand demonstration things did not go that smoothly for Tesla Motors, Inc. (NASDAQ:TSLA); the company failed to meet a few of the deadlines it had set for itself to install the robotic and completely automatic systems.

According to Musk Tesla Motors, Inc. (NASDAQ:TSLA) had to deal with several other issues that involved setting up its Gigafactory for manufacturing batteries; the factory is being set up in Nevada. The auto makers were also busy with supercharger stations network installation.

It appears that Tesla Motors, Inc. (NASDAQ:TSLA) may have more than just one reasons to set up its battery stations; these include economic reasons as well. it wasn’t long when the company was made to let go of its credits for zero-emission vehicles by California; it was done after rules for refueling were revised. The new rules in California demand that a range 285 miles and time of 15 minutes should be used for car fueling. This rule posed problems for Tesla Motors, Inc. (NASDAQ:TSLA)’s Model S that gets supercharged for 160 miles with a time limit of 30 minutes. On the other hand cars that are fueled using Hydrogen still get their full ZEV credits because they adhere by the rule. Before this rule was implemented Tesla Motors, Inc. (NASDAQ:TSLA) was selling other automakers its extra ZEV credits, which allowed the company to record profits last year.

Tesla Motors, Inc. (NASDAQ:TSLA) will get out of this predicament after its battery stations; the company once again will be able to receive its credits under one condition, the auto maker must successfully prove the efficiency of the system.

It will be interesting to see what kind of a response will these battery stations will get from users. Each battery swap at the station will require a payment between $60 and $80; moreover the users wither have to pick up their old batteries later or they will have to pay a heavy fee for upgrade, which means those who won’t be able to afford this fee will have to keep using superchargers.

The good news for Tesla Motors, Inc. (NASDAQ:TSLA) however is that the company has been posting profits even without its ZEV credits. Moreover re-fueling option will be available to consumers within the Los Angeles and San Francisco corridor by the end of this year.

Shares of Tesla Motors, Inc. (NASDAQ:TSLA) started today’s morning trading session at a value of $220.00 and took a dip by -1.89% to land at $222.76 at 10:35 AM EDT. The stocks ended its Tuesday’s session at a value of $227.06

Get Free Updates and Stock Alerts!



*We only send one email per week
Share.

Get Winning Stock Alerts!

Our track record speaks for itself! Our last 7 alerts have delivered combined gains in excess of 300% and there are no signs of slowing down. Join UltimateStockAlerts.com now before you miss out on our next big runner!

We will never sell or share your information.