Elon Musk & Tesla’s Future On Track
Being the hottest car company in the market today, so much focus and attention is directed at Tesla and its top dog, Elon Musk.
Tesla Motors (TSLA), considered the most promising electric vehicle (EV) maker among the top EV car manufacturers (which includes EV heavyweights like GM & Nissan ) surprised Wall Street with a share price spike of 365% during the past year. The company also received raving reviews from both automotive experts as well as customers in much publicized surveys.
The question now posed to both the company and its leaders is what is next for Tesla?
In an interview with the CBS show ?CBS This Morning?, Tesla CEO Elon Musk gave fans and investors a glimpse of where Tesla is going.
Musk mentioned in a sort of summary of what he planned to reveal, is Tesla’s intention to come up with new models that would be affordable to the motoring public.
Musk reiterated the game-plan of Tesla since its beginnings. Tesla started out with an expensive ?debut? car with the Roadster sports car, which was sold for over a Hundred Thousand Dollars when it was launched in 2009.
The next step in the Tesla strategy, Musk reveals, is to manufacture electric cars in the mid-price level and in adequate supply. These models ? known in development as the Model S ( a sport sedan) and the Model X (a sport-utility unit) ? will be sold for approximately US$70 Thousand dollars.
Video: Elon musk Talks About The Future of Tesla (Warick Karl / You Tube)
This news of a more affordable and amply supplied Tesla EV has generated a viral buzz and the resulting interest among venture capitalists to support Tesla in its goal of bringing a low priced EV to the market without running out of supply (manufacturing in large quantities, in short).
The still un-named models could be out as early as 2016 according to industry reports. Thilo Koslowski, a Gartner analyst said last December 2103 that ? This is hugely important for Tesla….This is ultimately the car that will make Tesla a household brand rather than just something in the premium segments.?
He also added that unlike other car companies (like GM and Nissan) whose main business is not with EVs, Tesla cannot survive with only 20 to 30 Thousand units in sales every year.
He noted however that Tesla’s journey was understandable as no car company could have gone mainstream overnight.
Musk echoes this sentiment when he mentioned in the interview that ? In order to make any technology mass market, it takes time…You’ve got to go through major design iterations.”
Musk compared their development to the mobile phone industry where early models that came out were ?beige bricks? that people would lug around hoping to get some connection, compared to nowadays where mobile gadgets have massive computing capabilities.
Musk also announced that in order to achieve its goals, Tesla needs bigger manufacturing facilities which means they will need to come up with a large amount of capital. He explained the reason why Tesla needed to prove itself by saying that ? In order to afford those factories, you’ve got to raise a ton of money. And people will only give you money if you’ve shown some prior success.?
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