Working with Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk is good for business, at least for the Israel-based SolarEdge Technologies. Working with Musk’s SolarCity has helped the Israeli firm to double its stock since its IPO in March.
Good to bond with Tesla brand
And now the Israeli firm is ready to work again for Musk, but this time will supply parts for Tesla ‘s home storage systems, says a report from Bloomberg. SolarEdge’s inverters convert the power from the solar panels into a current used on the power grids. Rising demand for the clean energy has enhanced the demand for the inverters. Therefore, robust demand for Tesla Powerwall batteries could help push the Israeli firm into a new market. Tesla storage solution allow a user to store the current for using it later.
On Wednesday, SolarEdge stock, which was offered for $18 at IPO, closed at $36.68 in New York. Goldman analyst Brian Lee expect the stock to rise further, and gave it a price target of $48.
In a note last month, Lee noted that the Israeli firm to be poised well for “volume upside moving through the second half of 2015 and into 2016 driven by an emerging energy storage opportunity via” its deal with Tesla. Lee expects the firm to earn $20m in sales from 25,000 Powerwall units. For 2014, the firm posted revenue $133m, which was up 68% from last year.
Even though the clean energy market is relatively small, experts believe that a bond with a brand like Tesla will bring long-term benefits to the Israeli firm.
Tesla batteries gaining popularity
A few days back, TransAlta announced it will be using Tesla’s commercial batteries to enhance its storage operations in Alberta, and to lower cost. The Canadian electric utility firm is planning to buy five Tesla Powerpack batteries, which offer a storage capacity of 100kwh and are as big as a home fridge. The Canadian firm will be using the Tesla products in office building, grocery store, apartment block, small office space.
Tesla product allows a user to buy power from the utilities during off-peak hours or when the rate is low, store and use them as and when needed. Tesla battery solutions is growing popular around the globe. Last month, AMS agreed to buy 5000 Tesla Powerpack batteries, and also made the US firm its leading technology partner.
On Wednesday, Tesla shares closed up 0.33% at $269.15, and year to date the stock is up over 20%.