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Tesla Files to Sell Electricity in Texas Retail Market

Tesla files with the Public Utility Commission of Texas to sell electricity in the retail market, a report says.
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Electric-vehicle maker Tesla  (TSLA) - Get Tesla Inc Report filed earlier this month with the Public Utility Commission of Texas to sell electricity in the retail market. 

The news was first reported by Texas Monthly.

Tesla could shine in the retail power market, sources told the publication. The company isn’t expected to compete with bottom-feeding retailers selling electricity at cut-rate prices.

Tesla may sell electricity from the regular grid or from Tesla’s own batteries, Texas Monthly said. It also could allow retail customers with solar panels to garner cash through sharing their power with the grid.

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In its filing, Tesla also said it seeks to construct two huge batteries to serve wholesale power companies, Texas Monthly reported.

Tesla was trading at $705, up 0.55%, early Friday. It has gained just 4% over the past six months, trailing the 14% gain of the S&P 500. Investor enthusiasm for electric car stocks has waned amid concerns about valuation.

Earlier this week, analysts at Deutsche Bank and New Street praised Tesla's artificial intelligence efforts. Last week, on its Tesla's AI Day, Chief Executive Elon Musk unveiled Tesla Bot, a humanoid robot, a prototype of which the company intends to unveil next year.

"We came away with greater appreciation for Tesla’s efforts in AI," said Deutsche Bank analyst Emmanuel Rosner, who reiterated his buy rating on the company.

Rosner said in a research note that "this effort creates a positive feedback loop where the system can continuously learn and improve faster than what we think any traditional competitor can achieve."

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