Elon Musk's Magic Rubs Off on EnerNOC Sending Shares 33% Higher
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of demand response company EnerNOC, jumped as much as 33% today after announcing they would work with Tesla Motors to monetize energy storage.
So what: After Elon Musk announced the Powerwall and Powerpack, EnerNOC announced that they will be working with Tesla Motors to monetize commercial and industrial energy storage through demand response. This could be key to justifying the cost of an energy storage system, although the release was light on details about the impact it will have on both companies.
Now what: Combining energy storage with the information and demand response capabilities that will make it economical are exactly the right kind of partnerships Tesla Motors needs to be making. The question for investors is how much this will impact EnerNOC in the next 1-3 years and that's yet to be determined. I think it's a great partnership, but I have a hard time seeing how it could make the company worth $100 million more than it was a day ago. I believe in EnerNOC long-term, but I'm not buying the pop today and would like to see some financial benefit from their recent partnerships before getting too bullish on the stock.
The article Elon Musk's Magic Rubs Off on EnerNOC Sending Shares 33% Higher originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends EnerNOC and Tesla Motors. The Motley Fool owns shares of EnerNOC and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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