Elon Musk: Utilities shouldn’t fear Tesla's battery systems

Elon Musk, Tesla's CEO, told electric utility owners at a gathering of utility executives in the US that they shouldn’t fear that his battery systems will put them out of business - instead, they should buy them.

Most customers in the U.S. will use the Powerwall home system as a backup in the event of a failure, not as a primary source of electricity replacing utility sales. Plus,  electric cars like the Tesla Model S will help triple demand for power in the coming decades.

Musk said the media has been confused about the role of the home battery pack, which wouldn’t be economic as a main supply source. He sees 80 to 90 percent of sales being in the larger Powerpack system, which could help utilities store power to reduce the need for expensive facilities that only run during times of peak demand.

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