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Transcript of Tesla Powerwall
Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
The Social Implications of Tesla Powerwall
Communication 3554: Social Implications of Technology
Mihir Shah
The Ohio State University
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
Introduction
On April 30, 2015, Elon Musk introduced the world to the Tesla Powerwall, a
revolutionary solar battery, which can run the electric grid system with renewable energy instead
of fossil fuels (Clemente, 2015). The battery stores and smoothens solar energy generation
during the day so that it can power electricity at night. While existing batteries in today’s market
are heavily flawed, unreliable, and unaesthetic, the innovative solar batteries from Tesla are a
new solution that are aesthetically designed, reliable, scalable, and efficient (Randall, 2015).
Tesla’s sustainable energy batteries are designed to reduce our consumption on fossil fuels,
revolutionize the way households and businesses consume power, and impact the way people
collaborate and design their products through the philosophy of open source patenting (Gipe,
2013). In this way, the social implications of the Powerwall are likely to impact people’s
perception of the war on oil, target to average consumers and households, influence people’s
social identity through social categorization, and create new opportunities in the market.
Background
Tesla is an American automotive and energy storage company that designs,
manufactures, and distributes electric vehicles, including its components and battery products
(Tesla Energy, 2015). The company introduced Tesla Energy on May 2015 (Tesla Energy,
2015). Tesla’s introduction of the Tesla Powerwall strengthened their efforts in moving away
from conventional fossil fuels towards sustainable energy (Tesla Energy, 2015). The batteries
allow households, businesses, and utilities to store sustainable and renewable energy to cope up
with power demand, store backup power and increase the strength of the grid. With that, Tesla is
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
working with utilities and renewable power partners globally to implement storage on the grid to
improve its overall resilience and cleanliness (Tesla Energy, 2015).
War on Oil
If the technology to efficiently harness solar energy already existed today, renewable
sources would have prevented the loss in trillions of dollars, many lives, and adverse social
impact on friends and families.
Many people in the USA have family, friends, and loved ones affected by war and it
impacts their lives. The social implications of war spread a broad variety of mental and physical
illnesses that affect work, family, and social functioning that eventually lead to substance abuse,
homelessness and suicide (Tanielian & Jaycox, 2008). For instance, 18.5 percent of service
members who returned from Afghanistan and Iraq have post-traumatic stress disorder or
depression, and 19.5 percent report experiencing traumatic brain injury during deployment
(Tanielian & Jaycox, 2008). This impairs their future health, work productivity, and family and
social relationship (Tanielian & Jaycox, 2008).
The war in Iraq was motivated by a U.S. drive to control or even influence the Iraqi oil
production since Iraq holds the third largest reserves of the world’s conventional petroleum
(Bonds, 2013). It is argued that the U.S. decision makers were strongly interested in the Iraqi oil
even before the war that killed 4,500 U.S. soldiers and an estimated toll on 110,000 to over a
million Iraqi civilian deaths (Bonds, 2013). The United States spent $1.71 trillion dollars for the
war on oil in Iraq through the fiscal year of 2013 (Crawford, 2013). For the amount of money
spent on the Iraq war, the U.S could be generating 40%-60% of its electricity with renewable
solar energy (Gipe, 2013). The costs are projected to grow to over $6 trillion in the next 40 years
if the war on oil continues (Lazarus, 2013). Assuming that the war continues for the next 40
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
years, it is reasonable to assume that it could fund the U.S. a 100% renewable energy power
system (WashingtonsBlog, 2013).
Electricity Consumption
With increased electricity consumption every year, the costs for non-renewables will be
projected to rise significantly over a long-term period (Lambert, Heddeghem, Vereecken,
Lannoo, Colle, & Pickavet, 2012). This will affect regular consumers because they will no longer
be able to comfortably afford fossil fuels and only companies and the wealthy would have the
funds to access non-renewables. Social inequity would become more pronounced due to lack of
energy access, since energy powers information (e.g., the Internet/computer, media/television,
and phone. People’s behaviors are likely to be influenced by the increase in price, as they would
have to be more conservative in energy use. This could also change purchasing behavior
significantly as the average consumer would now be compelled to purchase products that require
very little to no fossil fuels. In addition, they would be forced to adopt fossil fuel alternatives,
such as solar energy, if they wish to maintain the comforts of their technology, such as their
Internet, laptops, phones, microwaves, dishwashers, and the many other ubiquitous technology
around that are reliant on energy. Tesla attempts to address this future problem by enabling
people to power their homes and devices with the Powerwall. In a sense, people’s purchasing
behavior of energy-powered products does not have to change significantly with the Powerwall.
The Powerwall will allow people to ‘sustain’ their current technological comforts, which allow
the average person to learn and collaborate with others from around the world.
A third of the world’s fossil fuels are used for transportation and another third is used to
generate electricity (Tesla Energy, 2015). While electric cars are designed to decrease fossil fuel
consumption in transportation, solar batteries have the potential to decrease fossil fuel
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
consumption in electricity generation. Tesla motors have diverged the focus of the citizens away
from fossil fuels and directed it toward sustainable solar energy. In 2003 with the introduction of
electric cars, Tesla proved that they could be better than gasoline-powered cars with instant
torque, incredible power, and zero emissions thereby transitioning people into a sustainable
energy economy (About Tesla, 2015). With the release of the Powerwall, the world’s
consumption of electricity can gradually run on solar energy instead fossil fuels.
The world consumes 20 trillion kWh of electricity per year, which is powered by non-
renewables, mostly fossil fuels (Tesla Energy, 2015). This is enough energy to power a single-
family home for 1.8 billion years (Tesla Energy, 2015). The electricity consumption for the
communication network technology is growing fast, at the rate of 10% every year (Lambert et
al., 2012). The EPA estimated that it would take 1.6 billion acres of forest to fix the damage from
the U.S. electric power sector due to its production of 2,000 million metric tones of carbon
dioxide enough to burn 225 billion gallons of gas (Tesla Energy, 2015).
Open Source Patenting
When companies work collaboratively together to build innovative technology, it gives
people more options in the market, but most importantly, it makes the technology more
widespread and cost effective. Therefore, the more companies collaborate to advance solar
technology, the quicker it can fall into hands of the average consumers. The philosophy of open
source patenting is vital for innovation and society’s collaboration. The more sustainable
technology becomes economical, the higher the odds that the average consumers can join the
green revolution by becoming loyal customers and interact with other customers who have a
similar taste in technology.
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
On June 12, 2014, Tesla announced that it would not file for patent lawsuits against
anyone who has good intentions to use that technology (Legal, 2015). In order to accelerate the
advent of sustainable energy, Elon Musk’s policy is intended to encourage other companies to
build their own versions of sustainable products so as to foster the development and
advancement of society (Musk, 2014). As a result, BMW benefited from sharing Tesla’s patents
and built their own version of electric cars and supercharging stations (Ramsey, 2014). The open
patenting philosophy inspired even Toyota when they decided to open their patents for the
hydrogen fuel cell Mirai in 2015 (Rimmer, 2015). This trend towards electric cars will only
continue on an upward trend as more car manufacturers find ways to innovate electric cars, using
Tesla’s patents.
Although open-source patenting began with cars, Tesla’s collaboration with the best
engineers at BMW and Toyota can lead them to new heights in solar battery innovation and
advancement. Although Tesla’s battery is already considered compact, it is possible to continue
making it more compact or hold more power. Moore’s law predicted that overall processing
power for computers will double every 18 months (Schaller, 1997). This is the reason society
went from having the large computer boxes to the sleek, thin laptops that can be seen today. In
the future, it is possible that solar battery packs may become trends that people want to
continually switch out for something better. In this way, open source patenting can foster the
development of new sustainable technologies that can be made quickly, effectively, and
economically (Rimmer, 2015). As an incentive, people get to see more variety when purchasing
ecofriendly products and it becomes much more affordable for the average consumer.
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People’s Behavior
People will have to plan things in advance if they become more reliant on solar energy.
Whereas one always expects electricity to power them anywhere there is an outlet, solar power
has its limitations. Because the sun powers the solar batteries, they have to be consistently
recharged by the sun. When the weather is bad, for instance, during a cloudy or a rainy day,
people will be more conservative because their solar powered batteries will receive less sunlight.
It will also become habitual for people to see how much solar battery charge they have, just like
they do when they check their phones, laptops, and other mobile devices to see how much charge
they have left. However, when the weather is good, they will increase their consumption of
power without feeling the need to worry about high utility bills since they will use stored
sunlight energy to cope up with their energy demands. This will influence their social
communication with their peers because they will not be restricted to be conservative with their
electricity usage. Today, people encourage others turn off lights when they are not in a room in
order to conserve fossil-fuel electricity; by using the Powerwall, it will no longer be a necessity
for turning off lights when not using a space.
Description
The Tesla Powerwall solar battery is going to revolutionize the way households consume
power, how people store their energy, and how they will become self-sufficient instead of relying
on utility companies who track their monthly electricity consumption and charge them high bills
based on their energy consumption, especially during the winter when people use the heat. The
Powerwall is a world-class battery, super-efficient, and an affordable way to store energy that
has since long been put in cars most of the time (Danielson, 2015). The rechargeable lithium-ion,
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software-equipped batteries that are found in Tesla’s cars can now be mounted inside or outside
a building (Danielson, 2015). The battery is made specifically to store energy at a residential
level for loading shift, backup power, and self-consumption of solar power generation (Tesla
Energy, 2015). Along with the lithium-ion battery pack is the liquid thermal control system and
software receives dispatch commands from a solar inverter. Its inverter is designed to integrate
with other inverters for a seamless connection so that the customer does not have to set anything
up. With its integration with the local grid, the Powerwall harnesses extra power thereby giving
consumers the ability to store their own energy (Tesla Energy, 2015). Benefits of the Tesla’s
battery include: -
Load shifting – The battery can save the owners financial costs by charging itself when
there is a low demand for electricity and discharging when there is a high demand for
electricity.
Increasing self-consumption of solar power generation – The battery is designed to store
surplus solar energy in the day so that it can use that energy in absence of the sun. The
battery provides continuous power of 2kW and a peak power of 3.3 kW.
Back up power – The battery provides households with power during an outage.
The Tesla batteries will release in the later half of 2015, and is going to maximize the
capacity for buildings to harness solar consumption so that there never really has to be a power
black out again (Tesla Energy, 2015). For household use, the Tesla Powerwall will come in 2
sizes: the 10 kilowatt-hour pack for $3500, which can essentially run a home if the power grid
goes down, or the 7 kilowatt-hour pack for $3,000, which is ideal for daily usage. The batteries
have a 10-year warranty so customers never have to worry about maintenance (Danielson, 2015).
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Research and Social Implications
War, Fossil Fuels, and the Media
The development and well being of society rely on sufficient energy supplies, and there is
an increase in concern about our dependence on oil because more than 80% of our primary
energy is powered by fossil fuels (Hammarstrom, 2009).
Not only does the impact of war affect the average person’s taxes, it also intensifies their
dislike for people in the Middle East due to media framing, which affects people’s tolerance by
altering the perceived importance of public order values (Nelson, Clawson, & Oxley, 1997).
Media framing is what eventually leads to heated debates between individuals who play a blame
games and discriminate against people instead of taking responsibility and collaboratively
working together to fix global issues. In order to end the war for oil and prevent the likelihood of
fighting similar wars in the coming years, the U.S must join the rest of the world in adopting less
fossil fuels and also scale down the size of its armed force (Bonds, 2013). Economists argue that
the economical impact of the war on fossil fuels will exceed 3 trillion dollars, which includes the
costs for health care of injured soldiers and costs making interest payments for a war greatly
funded through deficit spending (Bonds, 2013). With harnessing solar energy, one could
withdraw from using fossil fuels and focus the 3 trillion dollars into our economy, which will
also reduce people’s attitudes toward the people in the Middle East and diminish the effects on
military men/women and their families.
Average Consumers and Households
Solar energy is one of the few alternative sources of energy that could be scaled up to
meet the average consumers’ future demands. Today, many people are very conscious of how
much heat they use in the winter, and by turning the lights on/off when not being in the room.
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
With the widespread of solar energy, people will not care about wasting their resources with such
intensity because it is renewable. Knowing that more solar energy reaches earth in one hour than
is consumed by mankind in a year, it would require less than 0.02% of this energy to fulfill our
energy requirements (Hammarstrom, 2009). Solar fuels enable conversion of solar energy into
useful forms of energy, namely heat, electricity, and fuels. Unless people are expecting cloudy
weather, people do not need to be conservative with solar power.
Currently, when people move homes, they have to find phone numbers of electric
companies to have the power transferred to their name before they can start using their
household electricity. With the Powerwall preinstalled in their homes, there would be no need for
people to go through this process. They would own their energy system, so they would not have
to call the electric company for blackouts or other issues; people will learn to take more
responsibility for their energy supply. The burden is passed on to the individuals to troubleshoot
any power issues, instead of the utility companies who provide them with electricity. So in case
there are any technical issues with the battery, they would either contact Tesla or work
collaboratively with their peers to fix the issues instead of calling the electric utility company.
Not only do solar fuels have long-term storage capacity, they play a vital role in
balancing out daily and yearly local variations in solar irradiation, and therefore have a
significant contribution toward future energy systems (Hammarstrom, 2009). In all certainty, the
Tesla Powerwall might the next large-scale sustainable energy solar powered battery that can
fulfill this niche and target to the average household consumers.
Social Identities, Social Categorization, and Social Statuses
Nowadays, people who use ecofriendly technologies like electric cars, see themselves
belonging to the “green” category. Their social identities and social statuses are reinforced when
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
they see other people using electric cars or even hybrids. Social identity theory states that
“people tend to classify themselves and others into various social categories defined by
prototypical characteristics abstracted from the members” (Turner, 1985). Social classification
serves two functions (Ashforth & Mael, 1989). First, it “cognitively segments and orders the
social environment by providing individuals with schematic means of defining others.” This
means that person is “assigned the prototypical characteristics of the category to which he or she
is classified” (Ashforth & Mael, 1989). Second, “social classification enables the individual to
locate or define him- or her self in the environment” (Ashforth & Mael, 1989). To understand
this, one can differentiate people who shop at Whole Foods versus people who shop at Giant
Eagle or Kroger. People shopping at Whole Foods are more likely to be viewed as
environmentally friendlier because they purchase organic groceries that have no artificial
pesticides in them.
Businesses have realized the importance of promoting a green revolution by providing
customers with rewards/incentives for those who use green technology systems, and this has
influenced people’s social categorization, social identities, and social statues. For instance,
environmentally friendly cars today get the same parking privileges as handicap cars and front-
row parking. In Florida an increasing number of Orlando buildings and venues are instituting
front-row hybrid-only parking spaces in an attempt to earn “green” the building status and
reward car owners considered environmentally friendly (Seidi, 2011). People consider it as
promotional to deem the parking spots as “sustainable spaces.” reserving spots for guest driving
hybrid/electric cars to events, thereby recognizing them for doing their part to be
environmentally aware and green (Seidi, 2011).
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
Even Ohio has significantly contributed to promoting the widespread of green
technologies in Columbus (Evans, 2012). Tesla’s charging stations in parking lots make it much
accessible for common people to purchase electric cars throughout Columbus in areas like
Victorian Village, Easton Town Center Parking Garage, and even Ohio Statehouse Parking
Garage (Evans, 2012). As an incentive, Columbus is working with Clean Fuels Ohio, which was
rewarded with a $500,000 Clean Cities planning grant to encourage community planning for
plug-in vehicles and their infrastructure. With the initial charging stations, it is easy to market to
residents and make the choice of switching to a sustainable energy vehicle much easier (Evans,
2012).
Just like their impeccable eclectic car line, the Tesla’s Powerwall storage technology,
teamed with solar, is predicted to do the energy industry what the internet did to media and
mobiles did to the telephone handset (Clemente, 2015). For the world of smart grids, this is
exciting news because people will be able to control and shift energy use throughout day and
night, and store energy wherever they want, furthermore simplifying the process for households
and businesses to going off-grid (Clemente, 2015).
People today are currently developing eco-habits and when Tesla and other companies
make solar energy accessible to the average person, the habits that people are nurturing will
begin to manifest more loudly and influence those around them. People will also develop social
categories within society and becoming part of the green revolution will influence their lifestyle.
For example, individuals will begin avoiding shopping or patronizing stores/businesses that are
not eco-friendly and will instead shop more at Whole Foods and similar places. Even if some
people scoff at the habits of eco-friendly individuals, their reach and influence will induce some
people to revert into the spiral of silence. The local, state, and federal government will most
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
likely create new rules and regulations in order to sustain our planet and solar energy will be
instrumental with these changes. In fact, on August 2, 2015, President Obama announced a plan
aimed at a massive reduction in greenhouse gas emissions from the country’s coal-burning
power plants (Serfaty, 2015). The plan is aimed to combat climate change and includes an
incentive program for states to get a “head start on meeting standards on early deployment of
renewable energy and low-income energy efficiency” (Serfaty, 2015).
In addition to the rules and regulations on climate change, they already have laws in
Seattle where households and businesses that do not compost get a fine of $50 because
composting food waster reduces emissions of methane, a strong contributor of climate change
(Kennedy, 2014). In fact, many cities around the U.S. and other parts of the world no longer use
plastic in grocery stores and charge customers extra for not having bags. This has changed
people’s habits in those cities, as they have to remember to bring bags with them. In the same
way, it is only a matter of time before the state and federal regulators get involved with the eco-
movement and start imposing fines/penalties for not being eco-friendly.
Social Drawbacks
Unequal Sunlight
With the Tesla Powerwall installed in consumers’ households, not everybody in this
country will have equal power consumption privileges, and social categorization will lead to
people feeling left out from the green revolution in areas that have little sunlight. For instance,
certain parts of the world such as Seattle have consistent bad weather/blocked sunlight, which
impacts their ability to harness solar energy during the day. Consumers in these areas might be
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
less likely to consume solar energy as their primary means of energy storage and may continue to
be dependent on fossil fuels for their power consumption.
High Installation Costs
Anther hurdle that might affect average consumers to purchase the Powerwall is the high
installation costs of the solar battery. While Tesla is ahead of the game with their current pricing
for stationary lithium-ion batteries at $350 per kilowatt-hour, the actual costs of installations may
almost be twice the price of their entry-level Powerwall unit (Danielson, 2015). This will widen
the group of people who can afford the Powerwall in their houses and those who cannot. When
there is such a circumstance, in-group members can play off the out-group members to further
strengthen their valued in-group identity including their self-esteem (Giles, 2011). Such an
outcome will further strengthen the in-group’s social status, and they might discriminate against
people who do not harness solar energy by categorizing them as the “non-ecofriendly” group.
Media, Monopoly and Big Utility Companies
Perhaps one of the biggest barriers that might affect the average consumers purchasing
the Tesla Powerwall is the monopoly of the big utility companies. And since these companies
have large funds to drive the media with advertisement and marketing strategies, they can slow
the progression of Tesla Powerwall to reach the hands of the average consumer. In this way,
media framing may indirectly affect the purchasing habits of the consumers who solely rely on
the mass media as their primary source of information.
Very few utilities have been interested in the renewable solar technology because green
energy is threatening their monopoly on power (Danielson, 2015). Naturally, if consumers are
able to store energy from the sun everyday and rely less on power providers, these companies
will suffer a decline in demand and even bankruptcy (Danielson, 2015). As a matter of fact, the
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Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL
Hawaiian Electric Company has already declined the progress of solar energy by charging
customers a premium if they use solar energy systems (Danielson, 2015). In Arizona, individuals
who use solar energy have a $50 increased fee per month, and in Wisconsin the average cost per
year for consumers who use solar energy is $182 (Danielson, 2015). This pricing strategy
negatively affects peoples’ purchasing habits and they become less motivated to invest in green
technologies and even recommend the technology to their social groups.
Recommendations
Teamwork and Collaboration
People must to work together to solve big problems so that the world can become a better
place. If people living in areas with excessive sunlight can collaborate and work with people in
areas that receive low sunlight, they can figure out ways to supply renewable energy to them
through the use of long distance power grids. With the widespread of solar panels and solar
batteries, it is estimated that it would require 160 million units of solar batteries to power the
country, and 2 billion units to make all the electricity generation in the worlds renewable
(Danielson, 2015). For the Powerwall to reach the masses of power providers, society will need
to invest additional time, resources, and persuade the utility companies to play along and
collaborate to build a sustainable energy future (Danielson, 2015).
I also believe Tesla’s employees should collaborate with real estate professionals and
preinstall solar panels and solar batteries in newly constructed houses. So when a customer
purchases a new house they also get to invest in green energy, which will reinforce their social
statuses and they will categorize themselves as ecofriendly.
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Campaign Advertising
I believe that company and its CEO, Elon Musk should continue pushing hard to
persuade people that purchasing their product could benefit society in many ways, especially the
users. They should create campaign advertisements and use guilt/emotional appeals about the
war on oil so that the average consumers are forced to purchase green technologies. This is
because guilt appeals motivate prosocial behavior, which might persuade people to change their
purchasing habits (Huhmann and Brotherton, 1997). Guilt appeals resonates responsibility and
violates one’s personal and moral standards (Maria, 1992). Therefore, the individual will be
more likely to purchase green technologies because failing to avert a negative consequence such
as the wounded casualties fighting for the war on oil will make the individual feel guilty (Maria,
1992).
Media, Social Influence and Persuasion
Using the media and influencing people can help change people’s attitudes and their
purchasing habits. In order to overcome their rival utility providers who are against the use of
green energy, Tesla should build stronger relationships with the media and the government to
educate the masses the benefits of using green energy. Social Influence, a core component of the
Unified Therory of Acceptance and Use of Technology Model, is defined as the “degree to which
an individual perceives that important others believe he or she should use the system”
(Venkatesh, et al. 2003). By using media as a tool for social influence, Tesla can educate the
younger masses by spreading awareness in websites such as Twitter, Facebook, and Instagram.
Finally, if people get convinced that purchasing the Tesla Powerwall can save them a lifetime of
electricity bills and they will never have to face a power blackout again, the average consumer
would be more than willing to invest over $3,000 in a sustainable energy batteries.
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Conclusion
From an electric car company that made human transportation have a sustainable energy
future, Tesla is trying doing the same for households and businesses with their stationary battery
products. Although people working for utility companies that rely on fossils fuels for their
energy dependency might lose their traditional jobs because of sustainable energy alternatives,
the social impact of the Powerwall will create new jobs in the solar energy market and influence
the way companies develop their sustainable energy products.
Therefore, it is reasonable to say that the Tesla Powerwall will impact future laws and
regulations that affect the everyday person, diminish people’s dependency on fossil fuels by
revolutionizing the way average households consume energy, influence people’s social identity
through social categorization, and create new opportunities in the eco-friendly market.
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