Tesla Home HVAC a Real Possibility & Would Challenge Yet Another Industry, Further Enhancing Synergy of Tesla Energy Products

by Eva Fox November 21, 2020

Tesla Home HVAC a Real Possibility & Would Challenge Yet Another Industry, Further Enhancing Synergy of Tesla Energy Products

In the spring of 2020, Tesla CEO Elon Musk talked about a home HVAC HEPA filtration system. Such a system would make a lot of sense and add more depth to Tesla's home solutions. As the company currently manufactures solar panels, solar roof tiles, and Powerpack home energy storage, HVAC would be a logical addition to this ecosystem. Such a business would also fit well within the company's broader mission, and secondarily, be a welcomed additional source of revenue.

On September 22nd, at Battery Day, Musk said:

"That's a pet project that I'd love to get going on. I don't know, maybe we'll start working on that next year. Because I just think, man, you could really make a way better home HVAC system that's really quiet and super efficient, super energy efficient, and also has a way better filter for particles. And it works very reliably, and we've already developed that for the car. So the heat pump in the Model Y is really pretty spectacular. It's tiny, it's efficient, it has to last for 15 years, it's got to work in all kinds of conditions from the coldest winter to the hottest summer. So we've actually already done a massive amount of the work necessary for a really kick-ass home HVAC."

Musk talking about this worried existing players like Daikin in the market. Tesla's move represents a "big threat," according to one company executive. But another company executive sees more business opportunities in this. "We need to think of it as a chance and consider partnering with Tesla," this source said, according to Nikkei Asia. Such associations are not uncommon in the industry.

"Tesla is looking toward a world where consumers buy and sell excess electricity created through energy management," said the Itochu Research Institute's Sanshiro Fukao, an auto-industry expert. "It doesn't see air conditioners as mere hardware."

Tesla's prior entries into a business or industry have often begun with a partnership. The company first teamed up with Lotus to create electric vehicles. Later Tesla partnered with Panasonic in the production of lithium-ion batteries. This is why there is a real possibility that Tesla could enter the home HVAC system business, perhaps again in partnership. "Tesla will use a partnership to prioritize speed," said Hitoshi Kaise, a partner at Roland Berger in Tokyo.

© 2020, Eva Fox. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter




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