Tesla Successfully Builds Largest Lithium-Ion Battery In Australia

Per Reuters, Tesla Inc. TSLA has completed installing the world's largest lithium-ion battery in South Australia. The construction was completed within 55 days from Sep 29, when the grid connection deal was signed.

In July, the company won a bid to construct 129 megawatt hour battery for Australia's most wind-energy dependent state i.e. South Australia. The company's CEO Elon Musk had pledged to install the battery within 100 days of signing the grid connection agreement. Otherwise the same would be given to the state for free.

At the time of signing the deal, Tesla had already installed half the battery packs.

Tesla Inc. Price and Consensus

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The company's powerpacks have been installed at a wind farm in France's Neoen and are undergoing testing to offer grid security services. Per South Australia Energy Minister, the battery will be operational from Dec 1.

Of the total $390-million plan the state has sanctioned for diesel-fired generators to deal with frequent power cuts, it is yet to determine the amount to be paid to Tesla for the battery.

The country's energy sector already notified that the power supply will be tight, mainly in South Australia and the neighboring state of Victoria, as one of the biggest coal power plants was shut down in March.

Demand for lithium-ion batteries is expected to rise in the near future and the batteries are anticipated to be widely used in consumer electronic products as well as in electric cars to curb pollution.

Price Performance

In the last three months, shares of the company have underperformed the industry it belongs to. The stock has lost 8.7% against the industry's 7.7% gain during the period.

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