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.

Tesla Motors Inc (TSLA) Success Could Benefit Power Companies, Renewable Energy Generation

Does Tesla Motors Inc (NASDAQ:TSLA)’s good fortune also mean the same to other companies such as those in the energy distribution and the renewable energy production sectors?

Andy Draga, CEO of Momentum Dynamics, thinks this is a possibility. In a dialog with Cory Johnson on Bloomberg West, Draga said that it is entirely possibly that a boom for Tesla Motors Inc (NASDAQ:TSLA), particularly in the development of battery technology, can also mean an upside for the mentioned industries.

According to Draga, generating electricity is “pretty cheap”. However, different factors such as the different stages in energy’s path to the home make electricity far more costly for the consumer.

He says that transmitting electricity is pretty expensive because of the infrastructure needed to do so. It is even more expensive when it goes down to the distribution side since you need to have transformers and such near homes and other facilities that need electricity.

Johnson and Draga were talking about how a breakthrough in battery technology at Tesla Motors Inc (NASDAQ:TSLA) can mean that the company, and consequently its stock, can soar. If the company brings down the cost of technology so much that batteries will become commoditized, Draga says that the company will indeed breakout. Furthermore, he notes that Tesla can also get into reusing batteries that are not viable for cars anymore into less demanding uses like storage units for electricity for the home.

Johnson asks Draga if repurposing batteries from cars, or using batteries that cost way less to store energy at the end of the line will mean huge cost savings for electricity companies. The Bloomberg host says that for example, instead of having capital outlay of $500 million for increasing generation capacity, power companies can just buy batteries from Tesla Motors Inc (NASDAQ:TSLA) for $400 million to store energy from power plants when the grid is not drawing that much of power.

Draga says that this one possibility which is why he believes that it will be great not only for Tesla Motors Inc (NASDAQ:TSLA) if it improves battery technology while bringing down cost.

Another possibility, Draga says, is that better and less costly battery technology will boost the renewable energy sector since there is now a way to store energy in great amounts. He says that one of the criticisms about renewable energy is that generation does not coincide with the need for power. Say for example, solar power is not present at night. This is changed by massive power storage capabilities, he notes.

following-this-hedge-fund-339113/?code=TIBAN">CLICK HERE NOW for all the details. Tesla, is TSLA a good stock to buy, NASDAQ:TSLA, Alex Draga, Cory Johnson, energy, batteries, renewable energy,

Daniel Benton’s Andor Capital Management owned 1.25 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.