Please ensure Javascript is enabled for purposes of website accessibility

Tesla Motor's New Battery Factory Could Send SolarCity Soaring

By Tyler Crowe - Feb 28, 2014 at 12:10PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Tesla's decision to build a $4-$5 billion battery factory here in the U.S. might make its vehicles cheaper, but it could also give SolarCity a major competitive advantage.

Tesla Motors (TSLA -2.44%) made huge waves in the market recently as it announced it plans to build the world's largest lithium-ion battery factory. While this multibillion-dollar investment will definitely have a profound impact on the Tesla's manufacturing capacity, it will also hopefully help bring down the costs of lithium-ion batteries. That reduction in costs will also have a major impact on not just Tesla, but SolarCity (SCTY.DL), which will certainly benefit, too. 

With the distributed solar space becoming a little more crowded with utility giants like Exelon (EXC 0.93%) and NRG Energy (NRG -1.06%) providing options of their own, SolarCity needs a way to differentiate itself from the rest. Find out how the move by Tesla could actually be that needed spark by tuning into the video below.

Tyler Crowe owns shares of SolarCity. You can follow him at under the handle TMFDirtyBird, on Google+, or on Twitter, @TylerCroweFool. 

The Motley Fool recommends Exelon, SolarCity, and Tesla Motors. The Motley Fool owns shares of SolarCity and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
$850.00 (-2.44%) $-21.27
Exelon Corporation Stock Quote
Exelon Corporation
$45.40 (0.93%) $0.42
NRG Energy, Inc. Stock Quote
NRG Energy, Inc.
$38.33 (-1.06%) $0.41
SolarCity Corporation Stock Quote
SolarCity Corporation

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.