Tesla Powerwall Sold Out Through Mid 2016

MAY 7 2015 BY ERIC LOVEDAY 46

Tesla Energy Powerwall

Tesla Energy Powerwall

Tesla Energy "Powerwall" Specs

Tesla Energy “Powerwall” Specs

Yesterday, on Tesla’s quarterly earnings call, CEO Elon Musk claimed that demand for the newly announced Tesla Powerwall (and commercial Powerpack) has been “crazy off the hook.”

Musk notes that Tesla received 38,000 reservations for Powerwall  Tesla won’t be able to fulfill all of those orders until sometime in mid-2106.  Musk adds that 2,500 companies have placed orders for Powerpacks (10 units combined), good for 25,000 more Powerpacks in total.

It’s the commercial side of this business that we believe will bring the highest level of benefit for Tesla.  On the residential side, Tesla’s Powerwall system has been met with a lukewarm reaction (see comments here).

Check out Tesla’s full Q1 2015 report and updates on other happens (Model S, Model X, Gigafactory, Model 3, etc) here.

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46 Comments on "Tesla Powerwall Sold Out Through Mid 2016"

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Moop

Big IF.

It is sold out if every online reservation converts to an order. Which it will not.

jill jill

IF: if the Dog Wouldn’t Have Stopped to Take A Crap….He would have Caught The Rabbit….l o l…….. If If ………The If’s & Butts of Life. Pun Intended ..ha ha ha

sven

If ifs and buts were candy and nuts, we’d all have a very Merry Christmas. 😀

Lensman

Every Tesla car sells is reserved online. If Tesla says they’re sold out from online reservations, I rather suspect they know what they’re talking about. It doesn’t require witchcraft to figure the ratio between online reservations and actual sales, merely experience.

jill jill

Regardless of all my Joking & Puns …I can’t wait For the Model 3…I Love* What Musk Is Doing & The way He Goes About it…I AM A HUGE FAN! He is Truly a brilliant individual!…..All the Best To TESLA!

Moop

Tesla car reservation requires a monetary deposit and a contract signing. Potential of financial loss for the reserver.

Powerwall reservation requires entering an email saying yes im nterested. No risk for the reserver.

See the difference?

Lensman

Yes, I see the difference. Tesla has also pre-sold online things like charging adapters, which have not required a deposit.

Tesla actually does take reservations and sells things online. You, presumably, do not. See the difference?

I wish there was a less rude cliche with the same meaning as “Teach your grandmother to suck eggs”, but there’s not, and it is staggeringly appropriate here.

sven

Lensman, it must kill you to have to put down your Tesla pom poms so that you can type one of your Tesla fanboy comments. 😀

Moop

If you feel that comparing a $100 charging adapter to an existing customer base via reservation to having a home installation done to anyone with an email address is comparable than I can see why you care about my grandmothers diet. But I’m not sure why you took offense to me pointing to a possible difference in your comparison. im allowed to defend my position. I think their estimate on conversion is way too optimistic and I don’t feel this article takes a critical enough look on how this is being handled.

Clif J

The process of providing name, phone number, and e-mail in order to click a “reserve” button with zero information about price, availability, and some significant spec omissions does not constitute a reservation, period. No T&C, no commitment, no deposit…

That some people regard Musk’s excitement about 38,000 clicks as material proof of “reservations” establishes the validity of the Barnum remark. (BTW: I do not blame Tesla for this idiocy.)

+100. That was the whole idea; throw some gigantic numbers at the CC, so Musk’s analyst friends can start pumping the stock.

sven
Lensman said: “Every Tesla car sells is reserved online. If Tesla says they’re sold out from online reservations, I rather suspect they know what they’re talking about. It doesn’t require witchcraft to figure the ratio between online reservations and actual sales, merely experience.” I hope Tesla learned something from their China experience. Most Tesla reservations did not turn into sales, even though Tesla took $5,000 deposits from Chinese buyers upon reserving a Model S. After the cars were manufactured, over 2,300 Chinese refused to pay the $30,000 second deposit before the cars were put on a boat and shipped to China. Tesla waived the $30,000 second deposit and shipped the cars, and then paid the both the 25% import duty and 17% value-added tax to get the cars into China. On a $100,000 car that works out to $25,000 import duty and $17,000 value-added tax for a total of $43,000. For 2,300 cars that is $98,900,000 paid by Tesla to China out of its cash reserves. Adding the $98,900,000 to the approximate $172,500,000 cost to build the 2,300 cars, Tesla had $271,400,000 in working capital tied up in unsold Model S inventory in China. It’s no wonder Tesla is burning… Read more »
Big Solar

@ Moop, what do you care if or not if? Just curious…..

Moop

I only care in so far as I’m extremely disappointed to see how the powerwall is being reported (here and elsewhere) as I feel tesla has gotten away with one here.

I was extremely interested at $3,500 plus a modest install fee. Reality is it will be over 2x that and all these headlines of “sold out” and 38k reservations send positive feedback to tesla that how they advertise pricing at their events and online is right, which I disagree with.

I suspect when the 38k people get their $7,200 quote, powerwall reservation conversion to orders is going to drop.

MDEV

Why are you so bitter about the success of an American company’?

Moop

What makes me bitter? I can take exception without being bitter.

I’m a tesla owner. I love my car.
I reserved a powerwall. I was excited about the price point.

But reporting it this way feeds into a marketing hype machine that validates an approach I don’t agree with.

It’s possible to support American companies but not agree with everything they do and how other sites report it. Isn’t it?

+3

Erik

Seriously bad metric. by their thinking I’ve ‘bought’ one as the only way to request more information was to put in your email and click ‘reserve’. There was no binding language or even deposit.

sven

I think Tesla did it that way intentionally so that Musk could crow about the great demand for the Powerwall in the conference call. Didn’t Elon also say that he wants to expand the Gigafactory by 50% to meet the demand for Powerwall batteries?

LuStuccc

No but now it’s called “Gigafactory ONE” …

Lensman

They had a news item about the Tesla Powerwall on one of the news commentary shows on MSNBC last night. The consultant they interviewed appeared quite knowledgeable about the field. He said that the Powerwall isn’t priced quite low enough for mass adoption, but that when the Gigafactory starts producing in quantity, that may bring the price down far enough to reach a tipping point.

Ocean Railroader

I remember LG chem talking about building their own version of this. I would bet that the LG Chem Battery would be anywhere from 15% to 25% cheaper than Tesla due to the Apple Premium Factor.

Someone out there

I think you are right there. Branding is a powerful thing.

Ricardo

This Musk fellow is no Steve Jobs I’m afraid.

Anon

Yeah, because unlike Jobs– Musk actually cares about humanity; not just selling a product.

Getting off of carbon-based fuels is essential, for energy and transportation. I wish he would switch his rockets to hydrogen. The Blue Origin ship is so clean when it launches…

https://www.blueorigin.com/

Ocean Railroader

Apple owns lots of cruel sweat shops in China and other counties. At least with Tesla they are opening up factories in America and paying decedent wages.

Personally I think in the next five years a lot of oil producing counties in the Middle East are going to go bankrupt to Musk.

Lensman

Not in just five years. 15-20 years, perhaps, altho not due to just Tesla’s production alone. There is a limit to how fast Tesla can ramp up production. And eventually, other EV makers will start giving Tesla some real competition.

Open-Mind

I hate to rain on your Apple hate-parade, but those Chinese sweat-shops are owned by Foxconn, not Apple. Foxconn makes almost every electronic gadget for the whole world. So if you use a cell-phone, then you’re part of the “problem”.

Speculawyer

“I think in the next five years a lot of oil producing counties in the Middle East are going to go bankrupt to Musk.”

On the contrary . . . more efficient cars and fracked oil from shale are bankrupting mid-east nations right now.

LuStuccc

Oh oh! It seems that SpaceX has serious comprtition!
Blue Origin has a pretty good marketing and the aero- brakes and fins are good ideas as well!
You say they use only hydrogen?

Anton Wahlman

What’s the definition of a “reservation” leading to “sold out”? Going to the web page and entering your email address? Please!

LuStuccc

So What! let’s say that quite unlikely, more than a half are not serious buyers… it remains that Tesla sold more than 15 000 wall units in only ONE week!

It’s not one week. It’s the result of whole month of drama, starting with tweeters. Pretty sure this is unsustainable pace. Tesla will be lucky if 10% of the orders remain.

jill jill

I love all the exaggerated Enthusiasm ! ! TITLE SHOULD READ: TESLA POWER “CRAZY” 0FF THE WALL! Again Pun Intended….lmao

Scott

Mid 2106. Wow, that must be a sloooow product ramp.

jill jill

It’s A Typo …I think they mean 2060.l o l ….

kubel

Sounds about right, seeing as Tesla has a tendency to underestimate release dates.

James

I’m skeptical that it’s sold out, and Rive said yesterday that Solar City won’t be offering both units, which is bizarre. It only delivers 2kW continuous, which means I’ll need 5-6 of them to be at all useful as backup, so I’ll watch cautiously from the sidelines until I see a few installed.

Brian F

I agree reservations are not sales but this does show strong interest.

I reserved because I’m an early adopter of this kind of thing and want to go to a TOU rate offered bu my utility. Those TOU savings alone don’t make it a good investment but I also intend to use it as backup for when the grid goes down. Hopefully my utility will offer an incentive because they can save in the forward capacity markets.

Companies and utilities already have the rate structure in place to save a lot on demand. Easier to justify.

Oops! Spoiler alert! The TOU daily cycling 7kwh pack can’t be used for backup. You got to buy at least 2 different packs.

Speculawyer

Reservations? Really?

I filled out the web form on the Tesla web site and it basically is just you expressing a vague interest.

ffbj

I believe that because I saw a headline that read:
“Vague interest in Tesla Power Wall rises sharply.”

LuStuccc

Lol!

Mister G

GO TESLA GO

NZDavid
In New Zealand we have line companies (poles & wires), and retailers (electricity sales). The largest line company (Vector) sent the Chairman of the BoD & two senior executives on a 12 hour flight just to attend the unveiling on the 30th! Vector has over a million ICPs (Individual Connection Points), so if they have only 1% of their lines that are approaching capacity, that’s over 1000 7kWh Power boxes right there. Personally, I am interested in getting a single 7 kWh battery and setting up a sub distribution board just for lighting and one power circuit that the fridge & microwave is on. The reason for this the 2 kW of solar can charge it up (no net metering or Fits here) during the day, I have backup for the essentials (for me) during a extended power cut, & finally, in winter, if needed, I can take a feed of the ‘grid’ to charge the battery. In my situation this should be enough to drop me to the low daily charge tariff (sub 8000 kWh per year). There must be tens of thousands in my situation in New Zealand alone, so while many expressions of interest will not move… Read more »
NZDavid

See Through

Of course you can use the 7 kWh systems for backup, I intend too.

However, if backup is all you want to do the 10 kWh system is cheaper overall.