Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Commoditization Key To Tesla Motors Inc (TSLA) Rocketing Up, Says This Expert

What would take Tesla Motors Inc (NASDAQ:TSLA) to the stratosphere? It’s just not cars, according to this executive.

In an interview with Cory Johnson on Bloomberg West, Momentum Dynamics CEO Andy Draga says that there is massive upside in the company if it succeeds with battery technology.

“If they are successful, what that factory can do is push down the price of the battery cell so low that it becomes a commodity. That is something that we haven’t done yet that needs to be done. And if he does that, it will go into homes, it will go into grid storage and it will go into cars and it will change the paradigm completely,” Draga tells Johnson.

According to the chief executive, there are two business models for grid storage and homes for Tesla Motors Inc (NASDAQ:TSLA). One is direct production and going into grid storage, he says, which means that the company will become a power company aside from a car maker. The second business model is what he calls “second life” which is taking a battery that isn’t really as functional as it ought to be for a car or a truck and putting that battery into grid storage where it is used less frequently and less intensively.

Draga says that a battery may be good for six, seven or eight years in a car before it needs to be replaced. This is because after every year of use, the battery begins to fade a little bit. After its eight or tenth year, it may have faded so much that you need a new battery, he tells Johnson. However, current technology implies that that battery still has life in it, Draga adds.

He says, however, that he is not saying Tesla Motors Inc (NASDAQ:TSLA) are no good after five years as they “are doing better than people expect”. Nonetheless, the battery will eventually need to be replaced and as they are swapped out, he argues that these batteries can still be used as part of the electric grid.

If Tesla Motors Inc (NASDAQ:TSLA) also succeeds in making batteries cost so low, the company has another business altogether in its hands, Draga implies.

Tesla, is TSLA a good stock to buy, NASDAQ:TSLA, Andy Draga, battery, commoditization,

Blue Mountain Capital managed by Andrew Feldstein and Stephen Siderow owned 15 million Tesla Motors Inc (NASDAQ:TSLA) shares by the end of 2014.

I just made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said ‘I lost money by EXACTLY following your stock picks’. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.