It actually makes good business sense.
Tesla applied (Through a newly formed subsidiary, Tesla Energy) with the Public Utility Commission of Texas to sell electricity on the retail market in the state.
Tesla's move would allow Texans (including private individuals) who operate solar facilities to tap into Texas' deregulated, stand-alone, energy grid (ERCOT).
Tesla's move would leverage
its investment in two Mega-Batteries it already owns or plans to own in Texas. (One near Tesla's Gigafactory in Austin, the other near Houston), and
Its solar panel manufacturing and installation business in Texas.
It would also create a new, steady and predictable, cash flow.
In February, Texas endured a protracted wave of power outages due to grid and supply failures. More than 100 people died, and Texans were left without power for days in the bitter cold.
It remains to be seen what impact Tesla will have on Texas' chronically problematic system - but Tesla will almost certainly benefit from the arrangement.
We follow Tesla (NASDAQ: TSLA) in our affiliate's Electric and Autonomous Vehicle Initiative. See Cambyses Financial Advisors' initiative page for additional information.