Recently, Jeff Yastine did an article calling on the Tesla Chief Executive Officer to change their business model if they want to be profitable in the future. Jeff said that instead of losing money in their car manufacturing business they should focus on Energy Storage which according to Jeff Yastine is an industry which is likely to be very lucrative at least for the next ten years. Some people may find this boring, especially when compared to their current business that features sleek, shiny and eye-popping vehicles but Jeff bets that several phone booth-sized boxes of lithium-ion batteries could be revolutionary.
According to Jeff, Tesla has already in a way demonstrated this by technically solving Australia’s energy crisis in more or less 100 days. Australia has always had perennial power problems, especially during the summer. For instance, on the 28th of September 2016 in South Australia, almost 2 million residents lost all power for several hours, in February this year in Sydney, home to over 5 million residents experienced a blackout of up to 3 days and in Victoria and New South Wales with a total population of more than 12 million residents and home to Melbourne, Australia’s second-largest city has also experienced the same problem.
This has been reported to be caused by too much dependence on wind and solar power which currently pride up to 40% of the country’s power needs. Secondly, the regulators have been aggressively postponing the launch and use of coal power plants leaving the power generators without the means to fill the gap especially in times when there is high demand for instance in summer when everyone has their air conditioner turned to the maximum. Then came in Musk and Tesla who in more or less 100 days managed to deploy more than 129 megawatts worth of its utility-scale Powerpack battery storage units that when the installation was brought online and fixed into the South Australia’s’ power grid the problem was instantly fixed.
Who is Jeff Yastine?
Jeff Yastine is a well-seasoned financial journalist with more than 20 years’ experience reporting on all major financial world events. Jeff has also been an ardent stock market investor for more than two decades. For the past 3 years, He has been working with Banyan Hill Publishing as editorial director. Jeff Yastine is also the editor of total wealth insider, a newsletter that helps investors make smarter and sound investment decisions.