The Daily Update - Elon Musk / Tesla

Elon Musk, CEO and Chairman of Tesla, put his money where his mouth is (OK, with him being worth nearly USD20bn, he’s hardly on the breadline!) when he claimed he could build the world’s largest lithium ion battery in less than 100 days in the Australian outback. Tesla finished the 100-megawatt battery just 60 days after they started it, at the end of September last year.

The idea came after Musk accepted a bet on Twitter after being asked if he was serious about helping South Australia. The major problem for South Australia is that it has less access to fossil-fuels such as gas and coal, so relies on renewable energy; at 41% one of the highest in the world. Which is all well and good, until the wind stops and the sun goes down, then power has to be imported from ‘peaker’ stations, that can power up to meet demand in the twilight hours. The new battery, which is connected to a wind farm,  can power up to 30,000 homes, will stabilise supplies and help stop the blackouts that have blighted the region for many years.

However, although the battery is three times more powerful than the world’s next largest battery, Musk and Tesla will not hold that honour for long.  Hyundai Electric & Energy Systems in South Korea is currently building a massive 150-megawatt lithium-ion unit in Ulsan, near the country’s southeast coast. According to Hyundai, the battery will go live in the first quarter of 2018.

Over the last few years billions has been poured into battery research and development, and today we have everything from your humble vacuum cleaner to trucks travelling 500 miles all powered by batteries. This has driven prices lower, with prices for batteries approximately 50% of what they were 3 years ago. And this is just the start. This year, according to Bloomberg, lithium-ion battery projects announced in 2017 were four times that for all of last year, at 1,650 megawatts per hour.

So … although Musk did indeed put his money where his mouth was, the odds were well and truly stacked in his favour!!

Please read this important information before proceeding. It contains legal and regulatory notices relevant to the information on this site.

This website provides information about Stratton Street Capital LLP ("Stratton Street"). Stratton Street is authorised and regulated by the UK's Financial Conduct Authority. The content of this website has been prepared by Stratton Street from its records and is believed to be accurate but we do not accept any liability or responsibility in respect of the information of any views expressed herein. The information, material and content provided in the pages of this website may be changed at any time by us. Information on this website may be out of date and may not be updated or removed.

The website is provided for the main purpose of providing generic information on Stratton Street and on our investment philosophy for the use of financial professionals in the United Kingdom that qualify as Professional Clients or Eligible Counterparties under the rules of the United Kingdom Financial Conduct Authority (the "FCA"). The information in this website is not intended for the use of and should not be relied on by any person who would qualify as a Retail Client. Products and services referred to on this website are offered only at times when, and in jurisdictions where, they may be lawfully offered. The information on this website is not directed to any person in the United States. The provision of the information on this website does not constitute an offer to purchase securities to any person in the United States (other than a professional fiduciary acting for the account of a non-U.S person) or to any U.S. person as such term is defined under the Securities Act of 1933, as amended.

The website is not intended to offer investors the opportunity to invest in any Alternative Investment Fund ("AIF") product. The AIFs managed by Stratton Street are not being marketed in the European Economic Area ("EEA") and any eligible potential investor from the EEA who wishes to obtain information on the AIFs will only be provided with materials upon receipt by Stratton Street of an appropriate reverse solicitation request in accordance with the requirements of the EU Alternative Investment Fund Managers Directive ("AIFMD") and national law in their home jurisdiction. By proceeding you confirm that you are not accessing this website in the context of a potential investment by an EEA investor in the AIFs managed by Stratton Street and that you have read, understood and agree to these terms.

No information contained in this website should be deemed to constitute the provision of financial, investment or other professional advice in any way. The website should not be relied upon as including sufficient information to support any investment decision. If you are in doubt as to the appropriate course of action we recommend that you consult your own independent financial adviser, stockbroker, solicitor, accountant or other professional adviser. Past performance is not necessarily a guide to the future. The value of investments and the income from them may go down as well as up. An application for any investment or service referred to on this site may only be made on the basis of the offer document, key features, prospectus or other applicable terms relating to the specific investment or service.

Where we provide hypertext links to other locations on the Internet, we do so for information purposes only. We are not responsible for the content of any other websites or pages linked to or linking to this website. We have not verified the content of any such websites. Such websites may contain products and services that are not authorised in your jurisdiction. Following links to any other websites or pages shall be at your own risk and we shall not be responsible or liable for any damages or in other way in connection with linking.

By using this site, you should be aware that we may disclose any information that we hold about you to any regulatory authority to which we are subject, or to any person legally empowered to require such information.

This website uses cookies to improve user experience, by clicking the "I Accept" button below means you consent to the use of cookies on our website.