The shares of Tesla Motors are trading lower today due the report that StoreDot, an Israeli company is ready to compete with the electric car manufacturer in the battery market.

Why Tesla Motors Inc (TSLA) Stock Is Down Today?

The stock price of Tesla Motors fell more than 3% to $222.44 per share at the time of this writing around 11:19 AM in New York.

StoreDot could challengeTesla Motors in the battery market

According to the Daily Mail, StoreDot’s battery technology could challenge Tesla Motors. The Israeli company developed a battery that can charge a smartphone in a few seconds and an electric car in minutes.

StoreDot is using a nano-technology to synthesize artificial molecules capable of absorbing and storing energy. The Israeli company developed a battery like a super-dense sponge that can charge and store energy quickly.

Doron Myersdorf, founder and CEO of StoreDot said, “These are new materials, they have never been developed before.

StoreDot already presented a bulky prototype battery for a smartphone. The company is expected make a slimmer version of the battery, which will be available in the market by 2016. The smartphone battery is expected to be fully charged in just 30 seconds and could provide 24-hour power.

The company raised $117 million in funding and plans to use the money to develop a battery for electric cars. According to StoreDot, one of its immediate objectives is to develop the “first every instantly-charging car prototype.”  The company also plans to develop a powerful new charging station and establish a new fast-charging standard.

Tesla Motors is currently leading the electric vehicle (EV) and energy store space. The American electric car manufacturer recently introduced Tesla Energy, its power cell segment, which is considered a primary income driver over the long-terms.

Tesla Energy already received 100,000 orders worth approximately $1 billion. Tesla Motors is currently building a Gigafactory to produce batteries for its electric cars, Powerwall and Powerpack units.

Market observers suggest that Tesla needs to work faster to develop solutions for to improve the energy density and lifespan of its batteries to remain competitive and keep its leading position in the battery market.

According to them, StoreDot could become a tough competitor for Tesla Motors in the energy storage business.

Tesla Motors’ autopilot firmware manager joins Apple

Separately, Jamie Carlson, a former autopilot firmware manager at Tesla Motors left the electric car manufacturer to join Apple. Based on Carlson’s LinkedIn profile, he is now working on special projects at the Cupertino-based tech giant. Previous reports indicated that Apple is developing an electric car under a project called “Titan.”

Apple and Tesla Motors have been in a head-to-head competition in recruiting talents.