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Subject:  Re: Tesla's Storage Future Date:  9/26/2021  8:11 PM
Author:  Oforfive Number:  118072 of 118283

There is a pure play energy storage/management company that currently (pun?) had more installed storage capacity than Tesla. I have a tiny position and am studying it. The narrative is AI/ML software to maximize utilization. Seems very simple usage model but there are very complicated monetization channels and diverse user profiles. 75% of revenue is hardware, 25% is services. The RPO is 2/3rd's service and 1/3 hardware. Hardware has about 5% gross margin, I think. Latest quarter non-GAAP GM was 11% overall. So, current financial metrics suck.

But the 1/3 hardware RPO will be realized within one year. The services RPO, 37% is greater than 5 years. They sell the hardware, install in one year and then harvest services for 10 to 20 years.
Because they have a number of different customer types, the picture is a bit obscure. They sell to utilities, to enterprises, to commercial, to developers, .... One of the more complex models would be an enterprise which both generates electricity and consumes it and so its generation period, its usage period and the electricity cost need to be predicted to control the time of consumption and time of selling.

Revenue growth was 339% Y-o-Y.

I am still digging.

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