How Tesla Is Helping Home State Texas Reduce Heatwave Strain On Its Electric Grid

As Texas reels under a heatwave, putting strain on the state's power grid, top EV maker Tesla, Inc. TSLA is reportedly doing its part to bring some relief.

What Happened: Tesla is sending a new in-car alert, recommending owners to charge during off-peak hours, news portal Electrek reported on Sunday, citing a screenshot of an alert posted on Reddit.

"A heatwave is expected to impact the grid in Texas over the next few days. The grid operator recommends avoiding charging during peak hours between 3 pm and 8 pm, if possible, to help statewide efforts to manage demand," the in-car alert read.

The Electricity Reliability Council of Texas (ERCOT) reportedly said six of its power generation facilities tripped on Friday, leading to the loss of about 2,900 megawatts (MW) of electricity.

Subsequently, ERCOT recommended people set their thermostats to 78 degrees or above and avoid using large appliances such as dishwashers, washers, and dryers during peak hours.

Related Link: Tesla Gets Invite From Malaysia PM To Set Up Factory 

Why It Matters:  Texas has a deregulated power market that is largely cut off from the rest of the country. In February 2021, a blast of cold weather in Texas caused a surge in electricity demand and crippled its power grid, forcing authorities to use rolling blackouts to prevent the issue from worsening.

Incidentally, Tesla's energy unit is a certified energy provider in Texas, having received official permission to sell power to the state late last year.

Morgan Stanley analyst Adam Jonas said in March that Tesla could be focusing on an energy grid, basing his deduction on the view that energy security has become a key to national security.

Price Action: Tesla shares closed Friday's session up 5.71% at $769.59, according to  Benzinga Pro data.