Tesla just broke into the top six auto makers in the world after pass General Motors. Tesla now valued at close to 50 billion is just shy of passing Honda valued at more than 52 billion dollars.
Tesla has been on the rise over the past few years growing to be one of the most recognizable electric car companies in the world. This on top of the release of its new solar roof and battery packs have pushed up investor confidence allowing Tesla to break records. Once the new Gigafactory is complete and fully operational Tesla's cost to products it batteries will begin to drop significantly and this will provide more profit for the company and allow to close its loss gap which will be about 900 million for the year.
The one major issue Tesla faces is the new administration. The promise of cutting regulation on fossil fuels and cutting funding to renewable energy has caused the shift to green energy to slow. But Musk's plan is to provide a low cost alternative to gas powered cars and with the new Tesla 3 going for about $35,000 and have a range of about 220 miles the car is in a good position to compete with its gas powered counter part.
https://www.bloomberg.com/news/articles/2017-04-10/tesla-passes-gm-as-musk-s-carmaker-becomes-america-s-top-valued
5 comments:
I agree that the new administration is a threat for Tesla, because they are looking into cutting regulations on fossil fuels and cutting funding for renewable energy. Tesla focuses on manufacturing cars that are eco-friendly and that will save the consumer some money. Even though, the new administration is looking into cutting regulation I do not believe that Tesla will be completely affected by this. I am sure they will continue to grow and gain a good percentage of the market.
Yeah the new administration may be a temporary threat, but I imagine it will only be a little blip in the radar if they continue to be innovative in the long run. Maybe this will force Tesla to be more efficient in the short term which will benefit them later on. Tesla's tremendous growth in recent years speaks to huge shift to fuel efficiency and high environmental standards that our modern economy values.
This was a very interesting article to read. I agree that the new administration will probably not effect Tesla as much as some people think. because the consumer that is going to buy a eco friendly car isn't going to be affected by low gas prices because they want to try to conserve the earth. Tesla will be able to get through this as long as they advertise there products to the right people at the right time.
This article shows that the new administration gonna threats the development of the green industries such as Tesla. Less regulation on fossil fuel and less support to renewable energy will increase the cost of production for those green companies and at the same time, push consumers back to the non-renewable energy field. I think Sam also brings a good point that the new administration can push companies like Tesla to improve the technology and to be more efficient. This is an interesting perspective. Hope this incentive also works on other companies.
I find it interesting that Tesla recently broke unto the top six auto makers in the world because it is such a high end brand. The current models of cars that Tesla has available in the United States are very high end and expensive. Most people cannot afford them and you do not see them on the streets very much. It will be interesting to see how the cheaper model does, considering it will be the first affordable model to hit the United States. I do not believe that the new administration and cut in funding will effect Tesla that much because I have noticed a increased effort in become more green. People could respond to this well.
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