Elon Musk is an unconventional billionaire who embraces new technology and social media to get his point across and reach millions the world over. This has been proven true once again as Tesla Motors Inc CEO’s tweet on a new product line from the popular electric car maker led to appreciation for the company’s stocks last Monday.
Tesla (TSLA) shares were actually trading for a lower than expected value in the first hours of last Monday, until Musk’s tweet went viral and completely changed the direction of Tesla stock leading to a 1.82 percent rise. When asked for more details, Tesla representatives declared that their company will provide more details on the new line within the next couple of weeks.
This isn’t the first time when CEO Elon Musk decided to speak directly to his audience via Twitter. The most recent of his announcement via the popular social media platform were made in March when he talked about a software upgrade for the popular Model S. He also managed to create a stir in the market last October when he announced a new product from Tesla which ended up being an improved version of the company’s Model S sedan.
After Tesla made the fourth quarter of 2014 results public this February, the company’s CEO declared that work on a new set of batteries for both the home and business environment was underway with production starting sometime in 2015.
It took less than two months for SolarCity Corp (SCTY) to preset their revolutionary microgrid system which will allow solar power and batteries to work together more efficiently. Elon Musk is the chairman of SolarCity while the company’s CEO, Lyndon Rive is his cousin.
Market analysts have repeatedly praised the company’s knowledge when it comes to batteries, with numerous experts pointing out that an 85 KW/h battery from the Model S can keep a standard house (which consumes anywhere between 12KW/h and 30 KW/h) running for approximately three days.
While solar powered homes currently sell extra energy back to the grid, certain factors indicate that the practice could change in upcoming years, either as a result of legislation or because of a drop in prices offered to these providers. Tesla’s home battery development is preparing for the change, making storage an effective and profitable alternative.
This being said, Tesla seems to be going through a rough patch as shares have dropped by 11 percent in the last 12 months and 15 percent since the start of 2015.