Tesla Motors (NASDAQ:TSLA)’s detractors will have to try harder if they want to bring the stock down. The shares of Tesla soared towards a 9-month high in yesterday’s session. The bullish drive saw shares of Tesla closing reaching an intra-day high of $264.36 before it closed with 2.88% gains at $260.41. The stock then gained 0.15% to $260.80 in after-hours trading. Tesla Motors shares have gained 34% in the last 3 months compared to 1.2% gain the S&P 500.
The initial gains in Tesla’s share price yesterday can be linked to news about positive investor sentiment. However, the positive sentiment is likely to continue today because Tesla is linked to a new deal that will make Wall Street happy. Tesla now wants a chemistry professor to fortify its batteries.
Merging Lower Cost with Higher Density and Longer Lifespan
Tesla announced that it has signed a 5-year exclusive partnership with a chemistry professor at Dalhousie Uni in Nova Scotia. Dr. Jeff Dahn who has been studying rechargeable batteries since 1978 and is an authority on lithium-ion batteries.
To see a list of high yielding CDs go here.
Dahn will be working on how to reduce the cost of the batteries used in Tesla electric cars. The said batteries are also an integral part of Tesla’s Powerwall and Powerpack units. Dahn will not only be working on reducing the cost of the batteries for Tesla. He will also work on increasing the energy density and the lifespan of the batteries.
The energy density of a battery refers to the volume of energy that you can store in it. For instance, energy density of the batteries in Tesla’s Powerwalls now provides 5kW steady and 7kW peak output. Before now, the Powerwall has an output of 2.2kW steady and 3.3kW peak. The energy density of the battery in the Model S 70D allows a range of 240M on a single charge. It appears that its Model X will have a range of 200 miles on a single charge.
The lifespan of the battery refers to how long the battery is able to meet your energy needs optimally. An attempt to increase the energy density of a battery usually shortens its lifespan. Hence, Dahn will focus on how to reduce the cost of production, and how to increase the energy density without reducing the lifespan of the batteries.
Batteries are the Lifeblood of Tesla Motors
On Thursday’s market shares in Tesla Motors were trading strongly on the back of the battery deal and a bullish market. At time of writing shares in Elon Musk’s firm were up 0.52% to $261.76. That keeps the shares above $260, a level attained on Wednesday for the first time in about nine months.
Batteries are an integral part of Tesla’s product offerings. Without batteries, electric cars are just concepts. Solar energy can never become popular unless there are batteries strong enough to store and deliver the energy when the sun is down. Tesla is already making bold steps to recreate batteries especially with its Gigafactory project. The expertise of this chemistry professor will help Tesla reach its goals faster.