By
Svetlana Soroka
April 18th, 2024
Tesla applied with the Texas Public Utility Commission to sell electricity in the state in mid-August.
Tesla Inc (NASDAQ: TSLA) stock closed Thursday trading at $701.16, down approximately 1.41% from the day’s opening price. Meanwhile, TSLA shares had regained approximately 0.55% of the loss during today’s premarket. According to a report by TexasMonthly, Tesla applied with the Texas Public Utility Commission to sell electricity in the state in mid-August.
Notably, Tesla intends to revolutionize electricity production and distribution in Texas that has over 120 different companies doing the same business. Should the filing be approved by November, Tesla intends to re-distribute power to the residents of Texas from the grid backed by the Tesla-made home batteries.
Reportedly, the company intends to build two massive batteries to serve the area. The first 250 megawatts battery will be constructed near the Austin Gigafactory. On the other hand, the company anticipates having another massive battery outside Houston.
Tesla has made tremendous moves to catch the promising market in Texas after abandoning California. Moreover, venturing into the power market in Texas is a plus for the residents as the company has proved to provide reliable and tested products. Earlier this year, Texas was hit by a power blackout after Winter storms ripped off the power line that took days to repair. Additionally, the blackout resulted in losses of up to $10 billion that providers such as Brazos Electric Power Cooperative could not pay.
Notably, up to five electricity retailers in Texas have exited the market due to unfavorable conditions. They include Griddy that were forced to purchase electricity on the spot market for $9,000 per megawatt-hour and then sell to customers below $50.
Tesla Stock amid the Company’s Plans in Texas
Tesla stock market is bound to reap huge benefits should the filing be approved by the regulators. Besides Tesla customers getting reliable electricity to power their EVs, the company will add on its burgeoning revenue.
According to market analytics provided by MarketWatch, Tesla stock has added approximately 58.39% in the past year and approximately 12% in the past three months.
With a market capitalization of approximately $704.1 billion, the Tesla stock market has a total of 990.02 million outstanding shares. A survey conducted by MarketWatch indicates TSLA stock received an average rating of Hold from 30 ratings.
However, on the long-term fundamentals, the company is well-positioned to rally further as it ventures into the technology industry. In the short term, the company, like all other automotive companies, is faced with a shortage in semiconductor chips. Notably, Ford Motor Company (NYSE: F) just announced that it will be cutting production of its F-150 pickup truck and other two models due to a semiconductor chip shortage.
The illustrations were provided by Depositphotos.com