Why Tesla's Battery-Swap Machine Will Boost Profits

By John Rosevear – Jun 29, 2013 at 9:59AM

NASDAQ: TSLA

Tesla

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Last week, Tesla Motors showed off its latest innovation -- a system that swaps battery packs out of its cars in seconds. But it's not just cool -- this new system could boost Tesla's profits.

Last week, Tesla Motors (TSLA -1.11%) showed off an innovation that can only be described as "cool": a system that swaps out the battery pack of the Model S and installs a new one -- in just seconds.

Tesla plans to roll this system out to its busiest recharging stations, to offer Model S owners an option to "refuel" quickly. But as Fool.com contributor John Rosevear explains in this video, Tesla isn't just doing it for the cool factor -- there are a couple of good reasons to think that this will boost Tesla's profits.

Fool contributor John Rosevear has no position in any stocks mentioned. Follow him on Twitter at @jrosevear. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.