The $35,000 electric vehicle could be a game changer for the company, as it will put Tesla ownership within reach for millions around the world.
Surely such a groundbreaking product will have ripple effects throughout other industries.
As a result, there will be winners and there will be losers.
Today I’ll tell how the Tesla Model 3 helps SolarCity Corp (NASDAQ:SCTY).
SolarCity and Tesla have been connected since SolarCity’s formation. By the time SolarCity was founded in 2006 Elon Musk was already two years into his involvement with Tesla.
Just two years later he would become the CEO and Chief Product Architect.
Today, Musk serves as CEO, Chief Product Architect and Chairman of Tesla Motors.
He is also the Chairman of SolarCity.
It’s not difficult to picture the future as Elon Musk sees it.
His companies make it pretty obvious.
Elon Musk expects that we will harness the sun’s energy with solar panels installed and financed by SolarCity.
He then expects us to store that solar energy in lithium batteries produced by Tesla’s proposed gigafactory and use those batteries to power our homes and the electric cars that Tesla will sell us.
Assuming that this vision becomes a reality, investments in SolarCity and Tesla make a whole lot of sense.
But you don’t have to believe in Elon Musk’s vision of a world powered by solar panels to think SolarCity will be a huge winner as Tesla grows.
Indeed, Tesla is already creating significant demand for SolarCity’s products and services.
Tesla has begun setting up a network “supercharger” stations all over the world.
The supercharger stations, designed to rapidly recharge the batteries of Tesla cars, are powered by SolarCity solar panels.
According to Tesla’s interactive map of supercharging stations, there are currently 145 in the world with an additional 27 under construction or in the permitting process.
As you can see on the map below, it is now possible to drive up and down both the Pacific and Atlantic coasts as well as all the way across the country by driving from one supercharger station to another.
But there are clearly gaps in the map.
And with only twelve supercharger stations in Germany, nine in Norway, five in France, four in China and one in the UK, Tesla clearly has a lot more work to do before its supercharger stations blanket the globe.
As Tesla fills in more of the map, it will require more and more solar panels from SolarCity.
Much more importantly, when the Tesla Model 3 comes out and Tesla becomes a car for the masses rather than just a niche luxury demographic, the company will need a significant amount more SolarCity solar panels for its supercharger stations.
Tesla also offers a direct link from its website encouraging Tesla customers to install SolarCity solar panels on their homes so that they can power their cars with solar energy.
With its financing programs that offer solar panels for zero money down, SolarCity will likely be a huge beneficiary from the day we see widespread adoption of Tesla’s cars.
That day is rapidly approaching.
With the Tesla set to begin sales of the Model 3 in 2017 the company has a lot of work to do in order to build out its network of superchargers.
In the meantime, SolarCity is quickly changing the face of residential and commercial solar power in America.
And the Tesla Model 3 will help SolarCity change the face of energy across the globe.
Jay Taylor personally owns shares of SolarCity.
This article is brought to you courtesy of Jay Taylor from Wyatt Research.