When we think about Tesla Motors, we all think about a company that produces high-end electric cars. But back in 2015, Tesla came out with a whole new product. This new idea was completely different from what we have seen from the company. Elon Musk, the company’s CEO, announced the Powerwall. This is a rechargeable lithium-ion battery that stores electricity for domestic consumption, load shifting, and backup power. This product can save up to 20% of the electrical bill, and it seems very attractive to many people already.

After the Powerwall launch, Sonnen, a German battery company, decided to compete with Tesla and started producing the eco-compact. This is a lithium-iron-phosphate battery that homeowners can buy for self-consumption, similar to Tesla’s product.

Telsa won the mind of the customers because they were first in presenting this new product. Sonnen wanted to start competing with the Powerwall, but their product came one year later than Tesla’s battery. This gives Tesla a huge advantage to be the leader in this specific product category: the home batteries that make consumption more efficient. In the other hand, I think Tesla Motors is starting to get limited by its name. We all identify Telsa with these revolutionary electric cars, but now that they’re developing new products and entering new markets, they have to start thinking about a name change. This new name has to be broader than the first one. But it’s not a huge change, it’s changing from Tesla Motors to just Tesla. This change gives the company the opportunity to expand to new markets without being narrowed to just electric-engine cars.

Regarding Sonner, I think they spent too much time designing this new battery that they fell into the follower’s place. They now have to think about a way they can claim a position in the customer’s mind. This competition will create a new battle for the customer’s mind.