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Why I’m Still All-In on TSLA: Part 2 — Tesla Energy
In Part 1, I wrote about Tesla’s manufacturing advantage. In Part 2, I’ll discuss Tesla’s Energy business. Note that I’m just a software guy who watches a lot of YouTube videos, not an expert on the US energy grid. In my opinion, energy is presently Tesla’s red headed step child. Automotive consumes so much attention that their energy business is always behind. Even so, the future is bright.
Disclaimer: I’m also not a financial advisor. These are just my opinions. Do your own homework, blah blah blah.
The Grid
Despite graduating as an Electrical Engineer, I slept walked through the power class during my Junior year. (Sorry Professor Sandler!) I passed the class and then GC’ed my RAM. Anyway, here’s my poor man’s attempt to explain how the grid works.
Electricity usage is pretty much generated on-demand. The moment you turn on the lights, a power plant somewhere has to deliver that power immediately. As a result, a power engineer’s main responsibility is monitoring load, ramping supply up or down to meet demand in real-time.
Electricity load follows a pattern. Demand is low overnight, when everyone is asleep. Then it begins to go up as folks wake up, work…