United States. The Tesla brand has gained great recognition in the industry for its electric cars. This brand is led by Elon Musk, who in mid-2020 mentioned the possibility of entering the air conditioning market.
Musk talked about a HEPA HVAC filtration system for the home. Such a system would make a lot of sense and add more depth to Tesla's home solutions. As the company currently manufactures solar panels, solar shingles, and Powerpack home energy storage, HVAC would be a logical addition to this ecosystem. Such a business would also fit well within the company's broader mission and, secondly, would be a welcome additional source of revenue.
On September 22, on Battery Day, Musk said, "That's a favorite project I'd love to get going. I don't know, maybe we'll start working on that next year. Because I think, man, you could really make a much better home HVAC system than really quiet and super energy efficient and it also has a much better filter for particles. It works very reliably, and we have already developed it for the car. So the heat pump on the Model Y is really spectacular. It's small, it's efficient, it has to last 15 years, it has to work in all sorts of conditions, from the coldest winter to the hottest summer. So we've already done a lot of the work needed for an impressive home HVAC system."
Musk talking about this worried existing players like Daikin in the market. Tesla's move poses a "major threat," according to a company executive. But another company executive sees more business opportunities in this. "We need to think of it as an opportunity and consider partnering with Tesla," this source said, according to Nikkei Asia. These partnerships are not uncommon in the industry.
"Tesla is looking toward a world where consumers buy and sell excess electricity created through energy management," said Sanshiro Fukao of the Itochu Research Institute, an expert on the automotive industry. "You don't see air conditioners as mere hardware."
Tesla's previous entries into a business or industry have often begun with a partnership. The company first partnered with Lotus to create electric vehicles. Tesla subsequently partnered with Panasonic in the production of lithium-ion batteries. This is why there is a real possibility that Tesla could enter the business of home HVAC systems, perhaps again in partnership. "Tesla will use a partnership to prioritize speed," said Hitoshi Kaise, a partner at Roland Berger in Tokyo.
