Tesla Making Profitable Assets for Customers

Saturday - November 18 2023, 17:00 UTC - 1 year ago

Tesla is creating multiple sources of revenue generation such as the Virtual Power Plant (VPP) and Virtual Cloud Compute (VCC) from their computer and energy products. Tesla car owners receive $2.00 for every additional kWh their Powerwall delivers during an ELRP event and can make up to $1000 a year using HW4. Elon Musk estimates that if Tesla achieves their goal of 100 million cars on roads by 2030 they could generate up to $100 billion of revenue from VCC.

I, Brian Wang, was interviewed by Herbert Ong (Brighter with Herbert) about how Tesla is creating revenue generation from all of its computer and energy products. Elon Musk indicates that the FSD computers that are in all Tesla cars can be used to run AI models. This will enable Tesla car owners to share in the revenue of a Virtual Cloud Compute (VCC). VCC will be like a compute version of the Powerwall Virtual Power Plant .

Through the Emergency Load Reduction Program (ELRP), homeowners receive $2.00 for every additional kWh their Powerwall delivers during an event. Cern Basher calculates Tesla HW3 car owners could make about $400 per year participating in a VCC and to about $1000 per year using HW4. Making $1000 per year would reduce the cost of ownership by 10-12%. I think this could be higher value AI run on the VCC if xAI is more successful .

Tesla currently has a global fleet of 5 million cars. Ten million cars could make about $4 billion with the VCC. A hundred million cars by 2030 (most with more powerful and profitable HW4, HW5 and HW6 chips) could generate about $40-100 billion of revenue each year.Tesla is utilizing all of their technology, such as Powerwalls, solar panels, Megapacks, and Teslabots, to create a profitable asset for their customers .

Powerwalls and solar panels act as a VPP (Virtual Power Plant), helping to reduce electric bills while creating profit for utility companies. Tesla also utilizes the computing potential of the Full Self-Driving Chips in their cars for the Virtual Cloud Computing (VCC), providing potential revenue for car owners. Elon Musk estimates that when the fleet of Tesla cars reaches 100 million cars by 2030, they will be able to generate between $40 to $100 billion per year from the VCC .