Tesla: What's Coming?
Suspense has evaporated over Tesla Motors Inc (NASDAQ: TSLA)'s plan to unveil a new line of battery products late Thursday targeted at both the electric utility industry as well as solar-powered homes.
The maker of electric vehicles got a big bounce from the news earlier in the week, but its shares changed hands recently at $227.83, off 2 percent.
In a letter to investors reported by CNN, Tesla confirmed earlier reports that the company will announce "home battery" and a "very large utility scale battery."
Tesla's Elon Musk had teased investors last month with a tweet promising a new product announcement April 30 "that won't be a car."
Battling disappointing results in China, Tesla is off more than 4 percent during the past six months, versus a 5 percent gain for the S&P 500.
Tesla is likely to manufacture the new battery product line at its $5 billion "gigafactory" under construction near Reno, Nevada.
The factory, built with help from Panasonic Corp. (OTC: PCRFY), is supposed to make batteries for 500,000 cars annually by 2020.
Tesla sold about 10,000 cars in the first quarter.
Musk is also chairman of potential Tesla battery customer SolarCity Corp (NASDAQ: SCTY), a provider of home solar power systems that is developing a battery management system built on its solar energy monitoring products.
Analysts are divided over whether Tesla's new product line expected to be unveiled in Palo Alto, California, at 8 p.m. local time Thursday, represents a gold mine for Tesla, or an effort to divert attention from its struggling core business.
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