Tesla Motors is facing competition from StoreDot in the battery production sector.
Tesla Motors needs to speed up its operations in the power sector if it intends to compete in the long term. Daily Mail has reported that an Israeli company, named StoreDot, has prepared itself to battle with the Californian automaker in the battery field with a device that is better than what Tesla or its competitors currently have in the market.
The Asian organization has pioneered a battery technology that can charge up a smartphone in half a minute, while powering an electric car in less than 300 seconds. Tesla news today disclosed that the Tel-Aviv based company is utilizing nano-technology to produce artificial particles that can absorb and store power. It has designed a power storage device that charges devices faster while storing a higher level of power supply than current lithium batteries.
The electric vehicle pioneer's power sector segment "Tesla Energy" is about to become a key income earner for the organization in the long term. Tesla Motors news indicated that the auto market seems to realize the power division's success, which has helped Tesla to dominate the electric vehicle and electricity storage space. The organization is aware and thus, it is developing a Gigafactory in Nevada. In fact, its energy division has already received 100,000 orders that could help it earn $1,000,000,000.
The issue with Tesla's power storing products is how to deal with energy density and the time span of the battery. The density measures the volume of power that the tool could store per time. Tesla news stated that battery's density could be extended by increasing its size, which consequently adds to its weight.
The Israeli company might prove to be a worthy rival for the North American organization in the power-storing business, as it is progressing quickly with its new technology. It has already received $48,000,000 from two rounds of funding. One of its supporters includes an unnamed Asian smartphone manufacturer. The Middle Eastern enterprise suggests that by 2016, it would develop a small battery that would be capable of charging a smartphone in only 30 seconds.
Industry professionals believe that the development of the aforementioned tool would not only threaten the interests of Elon Musk and his team, but also enhance its image in the corporate world. Tesla's officials should pioneer a battery that could charge the vehicle at a faster pace than the Asian battery to lead the energy sector.
StoreDot is indeed posing a threat to Tesla in the battery-production sector. Market analysts are excited about the future perspectives of the company. Time will decide the fate of this competition, but it is highly recommended to Tesla to watch out for any opportunity or method to mitigate the risk against the rising threat.