Tesla Motors Is Supplying Batteries To Its Sister Company SolarCity.

The auto-maker company is collaborating with SolarCity to provided batteries.

According to Bloomberg, Tesla Motors will be supplying batteries to its sister company, SolarCity. It is planning to use these batteries along with an assortment of solar panels specifically on the island of Kauai, Hawaii. This is going to be a massive order for the automobile giant that it will be providing to the solar energy organization.

As per the information provided in the report by Bloomberg, the auto-maker will be providing the solar energy company with over 13 megawatts of electric storage capacity; SolarCity is co-chaired by Elon Musk, the Chief Executive Officer of Tesla Motors plus he is the largest shareholder of the solar panel business.

The partnership between the automobile organization and the solar panel company indicates that the electricity will be supplied by Kauai Island Utility Cooperative (KIUC). As stated in the report by Bloomberg, electricity via solar panels will be provided to KIUC at a cheaper price of 14.5 cents per kilowatt hour by SolarCity for the next 20 years – as both have signed a 20 year pact.

This project between SolarCity and Kauai Island Utility Cooperative has not yet been approved by the Hawaii Public Utilities Commission. However, the partnership between Tesla and solar energy provider has been ongoing since 2010 and is not fairly new. The auto-maker has been utilizing the batteries in collaboration with the company.

A solution for renewable energy was also introduced by the automobile company as it launched its home powering Powerwall and Powerpack batteries in April 2015. The CEO Elon Musk has stated at the time these batteries were launched that it will revolutionize the way consumers will use electricity.

Presently, there is a high demand for Tesla’s battery products which are manufacturer under the Tesla Energy Venture – when the batteries were launched, during the first week the company sold over 800 million battery units. Throughout the current year, it is planning on increasing its production. Additionally during the earnings call of fourth quarter, the CEO of the automaker announced that they have shifted the production of the stationary products to Reno, Nevada which is a Gigafactory.

Additionally, Tesla stock jumped right after the company announced its fourth quarter earnings mainly because it provided a better than expected guidance for the year 2016, especially the number of vehicle deliveries it plans to make during the year. During the current year, it is expecting that the deliveries are likely to go up to 80,000 to 90,000 vehicles from a current delivery count of 50,600.

Presently the stock of the electric car maker is being traded at a share price of $168.68 indicating an increase of 8.71% in comparison to the previous trading session. The earnings per share reported by Tesla are -6.90 with a current market cap of $22.69 billion. During the previous trading session, the highest level at which the auto-maker’s share price of seen at was $169.34 and the lowest was $156.68.