Tesla Seeks Regulatory Approval To Sell Electricity Directly To Customers In Texas

Tesla Inc (NASDAQ: TSLA) has filed an application, seeking to sell electricity directly to consmers in Texas, as per documents on Texas Public Utility Commission's website.

What Happened: Tesla has, so far, not acted as a retail electricity provider. Instead, it makes big batteries that help other companies in energy generation, storage and consumption.

Tesla Energy Ventures, the wholly-owned Tesla unit that filed the application, said it would use employees from Tesla’s energy division if it secures the approval as a retail electric provider in Texas. The application notes that it will work with Engie Energy Marketing on scheduling, as first noted on CNBC.

Why It Matters: The Elon Musk-led company has built several utility-scale energy storage systems around the world. The latest application aims to connect a 100-megawatt energy storage system to the grid.

Texas saw massive power outages earlier this year amid extreme cold weather, with the Texas Power Grid seeing wind turbines freeze.

Musk, at the time, chided the Electric Reliability Council of Texas, or ERCOT, on Twitter after more than 26 million people were left without power following the storms that swept across the state.

.@ERCOT_ISO is not earning that R

— Elon Musk (@elonmusk) February 17, 2021

See Also: Why Tesla Might Build A Megawatt Battery In Texas

A few other locations where Tesla has built utility-scale energy storage systems include Los Angeles, another underway in Monterey, California, and two in Australia, CNBC noted.

Price Action: Tesla shares closed 1.41% lower at $701.16 on Thursday.

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