NEW YORK (TheStreet) -- Shares of Tesla Motors Inc (TSLA) are lower by 1.39% to $222.90 in late morning trading Friday, after the electric car maker unveiled its new business called Tesla Energy in an event late Thursday.
The company said it is moving into the energy storage space, and will focus on energy efficient batteries for homes and businesses.
Tesla CEO Elon Musk announced the firm's solar energy batteries will serve as a back-up system during blackouts.
Musk said the company's goal was to "fundamentally change the way the world uses energy on an extreme scale," according to Reuters.
Tesla designs, develops, manufactures and sells electric vehicles and advanced electric vehicle powertrain components. The company owns its sales and service network.
Tesla is based in Palo Alto, CA.
Insight from TheStreet's Research Team:
Michael McDonald commented on Tesla in a recent post on RealMoney.com. Here is a snippet of what McDonald had to say about the stock:
Tesla's (TSLA) announcement last week about creating a new line of batteries for use by businesses, consumers, and the electrical grid at large is a game-changer for the industry. Currently, when individuals or companies need back-up power, they usually rely on generators. Effective battery storage for large amounts of energy would be a game changer in that it would enable a separation of generation and use of energy produced through clean fuels like solar and wind power.