By Tony Singh. ID – 212401746

Tesla.. Transforming the world one electron at a time.

What is the Tesla Power Wall?

The Tesla power wall is an innovative new product from the world’s most recognised brand in consumer electric automotive and energy storage. Their latest offering of consumer power storage for households is an exciting move for the company that wants to disrupt the power consumption market with a very simple alternative – Store the power from your solar cells so it can be used when you want.

If Elon Musk (CEO) is successful he would have discovered the Holy Grail of consumer power.

The Powerwall  is a home battery that charges using electricity generated from solar panels, or when utility rates are low. This allows you to use this power in the evening or when necessary. Powerwall enables domestic consumers to fully utilise stored power. This was difficult to achieve some ten years ago as battery technology was in its infancy.


Power just got sexy

The look and feel of the Tesla Power Wall is almost that out of science fiction or an Apple iPhone lab. It is slick and smooth showing all the hallmarks of good design.









The base model is a 7kWh lithium-ion battery storage system that comes with a 10 year warranty. Keeping a slim design focuses the brand as a modern device suitable for the home rather than a bulky looking industrial box.

It is with this design that Tesla believes will appeal to the consumer power market. The science behind the problem is deceptively simple given the advancement in battery technology.


Tesla is pitching the Powerwall solution to the established solar panel market. Tesla have their sites on the Australian market as there has been large scale adoption of solar panels. According to the Energy Supply Association of Australia, we have the highest rate of household solar panel installations in the world.

Current pricing has the units set at $14,000 to $15,000 or $12,000 if you already have solar panels. Depending on energy needs of the average house additional batteries may need to be purchased but the system does scale.

Not all domestic power consumers will find the solution useful this is why Tesla have kept the segmentation very simple. Basically you have two options – Power Pack for business consumers (small scale offices) and Powerwall (domestic households)

Different Types of Powerwall

Source : Tesla Australia

Domestic consumers are the key target market. Tesla plans for Mums and Dads that have already invested in solar panels to allow them to leverage their solar power investment further.


Targeting the wealthy?

Do only rich westerners get a look in here? Tesla have identified the big problem of the new century. Affordable power storage for everyday consumption. The solution suits a very specific demographic.

Tesla are targeting middle class Australian homes that can afford the start-up costs in installing the solution. The demographic is cost conscience mums and dads looking to get a return on investing in do it yourself power provision.

Return on Investment (ROI) Calculators are the first to offer detailed advice on how the investment in it can provide a return. With certain groups claiming that a the Powerwall solution can deliver a 6 year payback in Australia.

“In Australia, the price you are paid for the excess solar power your home generates is lower than the price you pay for electricity from the grid,” a statement from Tesla says.

“Given this rate structure, it is more cost effective to consume your solar power than to sell it back to the utility. By storing your home’s surplus power and using it when you would otherwise need to pull from the grid, Powerwall minimises your net spending.”

This is the key benefit of the solution and Tesla are banking the farm on the success of this strategy.


Positioning the power wall

Forbes recognises the huge potential of the stored energy market. American Vanadium predicts massive growth in this sector

Given the brand recognition of Tesla products being of high quality coupled with the worlds increasing need to find better alternative power alternatives, the Powerwall is geared for growth.

As far as where the Powerwall sits on the positioning matrix


Source : Iacobucci p61

It is clear the product sits on the high end side of the ledger. Distribution is exclusively managed through key third parties or via Tesla’s online presence. There are few options in terms of products on offer but the problem is defined very simply. Musk is masterfully promoting the problem as a solution that will change the world. As he states 

“Tesla is not just an automotive company, it’s an energy innovation company. Tesla Energy is a critical step in this mission to enable zero emission power generation.” He professes a simple dilemma that will resonate with any consumer of power; which is all of us

“We have this handy fusion reactor in the sky, called the Sun,” he said, stressing that solar power is the best way to end the world’s addiction to fossil fuels and head off a disastrous future in which we are overwhelmed by CO2 in the atmosphere.

The opportunity to change the world might be just here…







  • Iacobucci, D 2013, MM4 Marketing Management, 6th Edition, Cengage Learning, Mason USA.





Tesla’s Power Solutions – Power packs pack a punch

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