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Elon Musk Announced Another Huge Bet Today, And The Fate Of The Solar Industry Is Riding On It
Business Insider ^ | June 17 2014 | Rob Wile

Posted on 06/17/2014 11:58:19 AM PDT by PoloSec

We recently explained how Tesla needs to build what it is calling a "gigafactory" for batteries in order to survive. The rest of the world is not building enough lithium ion storage to meet what Tesla thinks will be surging demand, so it has decided it must do it itself by making a very costly factory.

Tuesday, SolarCity (Elon Musk's other company) announced it will have to do the same for solar panels. The firm unveiled plans to build one of the world's largest high-efficiency solar panel plants, using technology from Fremont-based Silevo, which they also said they'd acquired.

"We expect to have to install 10 gigawatts [of high-efficiency panels] a year," Chairman Elon Musk said on a conference call announcing the move. "If you look at the current capacity in the world, we're not able to do that right now."

It's not just a supply question. Solar panel prices have been falling in recent years thanks to a production boom in China. But the panels getting produced, though cheap, aren't terribly efficient and prices have begun bottoming out anyway.

They are likely to begin climbing: Government subsidies for renewables start getting phased out in 2016, and the political environment for rebooting them remains unstable at best.

Plus, in a call with BI, CTO Peter Rive said recent U.S. moves to slap tariffs on Chinese panels served as a "catalyst" for looking into building the Silevo plant.

Will the demand be there? The firm's own polling suggests there is. But if you assume that electricity customers are price agnostic, rooftop solar still has some ways yet to go to become cost competitive with fossil fuels. Musk recognizes this and beating fossil fuels at their own cost game remains his ultimate goal.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; News/Current Events; US: California
KEYWORDS: california; china; elonmusk; fremont; photovoltaics; silevo; solarcity
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1 posted on 06/17/2014 11:58:19 AM PDT by PoloSec
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To: PoloSec
How, exactly, is a Tesla vehicle "green?"

Is there some magic source of electricity I don't know about?

2 posted on 06/17/2014 12:01:39 PM PDT by E. Pluribus Unum ("The more numerous the laws, the more corrupt the government." --Tacitus)
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To: PoloSec

More businesses totally underwritten by Federal Leftist Grants.

How much is the Federal Government putting into this boondoggle and how much will Musk siphon off the top for ‘management fees’ and CEO salary?


3 posted on 06/17/2014 12:03:05 PM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: Jim from C-Town

Tesla stock looks like the biggest slam dunk short I’ve ever seen.

But I’d never bet against a regime ally.


4 posted on 06/17/2014 12:03:55 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: PoloSec

Operation Bluestar?


5 posted on 06/17/2014 12:05:52 PM PDT by Dr. Bogus Pachysandra ( Ya can't pick up a turd by the clean end!)
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To: E. Pluribus Unum

There are two magic sources of electricity - hydroelectric and nuclear. They are both incredibly safe, cost effective and even carbon free for believers in that particular strain of voodoo.

Unfortunately they are both considered “icky” by the watermelon tree-huggers, so neither one will be properly developed and expanded.


6 posted on 06/17/2014 12:14:14 PM PDT by Go_Raiders (Freedom doesn't give you the right to take from others, no matter how innocent your program sounds.)
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To: PoloSec
I'll bet he's not going to build a solar panel manufacturing plant on his own dollar. I smell zer0 and his people. This also smells like a rat hole for our tax
dollars.
7 posted on 06/17/2014 12:27:33 PM PDT by reefdiver (Be the Best you can be Whatever you Dream to be)
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To: Go_Raiders
I'm all for nuclear. The "greenies," however, are against any cheap source of energy because their real goal is to starve six or seven billion inconvenient humans.
8 posted on 06/17/2014 12:27:49 PM PDT by E. Pluribus Unum ("The more numerous the laws, the more corrupt the government." --Tacitus)
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To: E. Pluribus Unum

nobody says EVs are green. (or at least I don’t)
.........

EVs are disconnected from Arabs and Exxon.


9 posted on 06/17/2014 12:34:03 PM PDT by RockyTx
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To: E. Pluribus Unum
How, exactly, is a Tesla vehicle "green?"

Is there some magic source of electricity I don't know about?

Don't forget how gaia herself delivered all the materials free of manufacturing to Tesla.

10 posted on 06/17/2014 12:37:32 PM PDT by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: RockyTx

They are not disconnected from the carbon dioxide scam, which is just as dangerous as the Arabs.


11 posted on 06/17/2014 12:39:39 PM PDT by E. Pluribus Unum ("The more numerous the laws, the more corrupt the government." --Tacitus)
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To: PoloSec

I hope solar goes down the flush and he loses his ass!


12 posted on 06/17/2014 12:41:02 PM PDT by dalereed
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To: PoloSec

SCTY up 18.5% today


13 posted on 06/17/2014 12:41:06 PM PDT by Wyatt's Torch
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To: nascarnation

People have been saying that since it was $150...


14 posted on 06/17/2014 12:41:35 PM PDT by Wyatt's Torch
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To: nascarnation
Tesla stock looks like the biggest slam dunk short I’ve ever seen. But I’d never bet against a regime ally.

I remember when people were saying Amazon was a slam dunk short back in the late 1990's.

15 posted on 06/17/2014 12:44:18 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Jim from C-Town

Musk’s salary is $33,280 per year at TSLA and is not listed in the SCTY proxy.


16 posted on 06/17/2014 12:49:13 PM PDT by Wyatt's Torch
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To: Moonman62

The vitriol for a disruptive innovator like Musk on this site is astounding...


17 posted on 06/17/2014 1:19:00 PM PDT by Wyatt's Torch
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To: Go_Raiders
I'm fine with the hydroelectric choice. When you can show me that Fukushima, WIPP and Hanford are clean enough for you to visit with your family for a picnic, then we can consider the nuclear option.
18 posted on 06/17/2014 1:39:53 PM PDT by Myrddin
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To: Myrddin

“When you can show me that Fukushima, WIPP and Hanford are clean enough for you to visit with your family for a picnic, then we can consider the nuclear option. “

If the nuclear power plant mfrs. had any reason to believe that the US would allow the technology going forward, they would invest in better technology. There have been no major improvements to nuclear power generation for decades thanks to our government. As for Fukushima, TELCO was negligent in how in managed their nuclear plants. To a large degree the problem was poor management and maintenance practices and not upgrading their plants to avoid catastrophes. It’s like replacing the Bay Bridge in San Francisco. We could have bet that “ the big one” wouldn’t come along any time soon, or we could replace an aging, deficient structure. We did the latter.


19 posted on 06/17/2014 2:24:17 PM PDT by vette6387
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To: Moonman62; Wyatt's Torch
Amazon

Bezos is a Baraqqi crony capitalist also.

http://www.breitbart.com/Big-Journalism/2013/08/05/Obama-visit-Amazon-Bezos

I never bet against the regime, at least for now.

But my hope is to someday be the next John Paulson.

20 posted on 06/17/2014 2:52:40 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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