Tesla It runs on electricity, which in turn

Tesla is quite an interesting company that seems to
be ahead of the game In terms of car manufacturing. They have set out to try to
be the most cost efficient company there is. CEO Elon Musk has a wide range of
great ideas that have to do with saving our ecosystem and our money due to the
use of solar panels. Although Elon Musk is trying to save us money is he really
benefiting his company along the journey? Join me as we take a deeper look into
the company Tesla one of the few motors that are 100 percent made in the US. A
company for the future that focuses on energy innovation.

They’re great for the environment, but they’re pokey
and impractical, and nobody wants to buy one. The stunning success story of the
Tesla Model S has, improbably, flipped that equation. It’s blazingly fast,
surprisingly practical, and everyone wants to buy one. But now some critics are
asking how green is it, really? Electric cars are squeaky clean, of course, in the
sense that they don’t burn gas. With no engine, no gas tank, and no exhaust,
they’re considered to be zero-emissions vehicles. But there’s more to a
vehicle’s environmental impact than what comes out of the tailpipe. The Tesla
doesn’t run on air. It runs on electricity, which in turn is generated from a
range of different sources, from nuclear fission to natural gas to the darkest,
dirtiest fossil fuel of them all which is coal. So it’s fair
to say that your average Tesla is powered in large part by burning fossil
fuels. Tesla acknowledges this, and insists that its cars are still far cleaner
than their internal-combustion competitors. That’s because battery-powered cars
are more efficient at converting their stored energy into forward progress.

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Tesla was founded in 2003 by a group of engineers in
Silicon Valley who wanted to prove that electric cars could be better than
gasoline-powered cars. With instant torque, incredible power, and zero
emissions, Tesla’s products would be cars without compromise. Each new
generation would be increasingly affordable, helping the company work towards
its mission: to accelerate the world’s transition to sustainable energy.

Tesla’s engineers first designed a powertrain for a
sports car built around an AC induction motor, patented in 1888 by Nikola
Tesla, the inventor who inspired the company’s name. The resulting Tesla
Roadster was launched in 2008. Accelerating from 0 to 60 mph in 3.7 seconds and
achieving a range of 245 miles per charge of its lithium ion battery, the
Roadster set a new standard for electric mobility. Tesla would sell more than
2,400 Roadsters, now on the road in more than 30 countries. The company is expanding its manufacturing footprint into other areas,
including in Tilburg, the Netherlands, where it has an assembly facility, and
Lathrop, California, where it has a specialized production plant.

In 2012, Tesla launched Model S, the world’s first
premium electric sedan. Built from the ground up to be 100 percent electric,
Model S has redefined the very concept of a four-door car. With room for seven
passengers and more than 64 cubic feet of storage, Model S provides the comfort
and utility of a family sedan while achieving the acceleration of a sports car:
0 to 60 mph in about five seconds. Its flat battery pack is integrated into the
chassis and sits below the occupant cabin, lending the car a low center of
gravity that enables outstanding road holding and handling while driving 265
miles per charge. Model S was named Motor Trend’s 2013 Car of the Year and
achieved a 5-star safety rating from the U.S. National Highway Traffic Safety
Administration.

Of course Tesla’s main focus point and product lines
don’t only include roofs they make solar paneled roofs for your home as well. The Tesla and SolarCity solar roof is a complete roof that is beautiful,
durable and brings renewable electricity production to any home or business.

The solar roof consists of uniquely designed glass tiles that
complement the aesthetics of any home, embedded with the highest efficiency
photovoltaic cells. It is infinitely customizable for a variety of different
home styles, each uniquely engineered so that the photovoltaic cells are
invisible. Customers can choose which sections of their roof will contain the
hidden solar technology while still having the entire roof look the same. These
new roofs will seamlessly and beautifully supply renewable energy to homes,
battery storage systems and back into the grid creating savings for owners.
When combined with Tesla Powerwall, the solar roof can power an entire home
with 100% renewable energy. 

 

Real Revenue Growth, over the last
four years ending 2016, this firm grew revenues at an astounding average of
103% per year. Sustainable Revenue
Growth, The entire amount of annual revenue growth is totally
unsustainable. In the last four years teslas sustainable growth has ranged
from-8% in 2012 to -47% in 2015 then back down to -35% in 2016

Pricing Policy, Tesla raised its markup on products
after being much too low in 2012 and prior. Since then, they have raised markup
to 1.57 times costs of goods sold to revenues from 1.17 in 2012. Operating expense control, Tesla’s
revenue increased 11% to $618 million in the first quarter of 2014 compared to
the first quarter of 2013. This is due to deliveries of the Model S. Tesla has
a 25% gross profit margin. This margin is almost twice that of GM, which had a
13% gross profit margin in 2013.  My thoughts on value At this point, we’ve seen that Tesla remains
unprofitable and doesn’t generate cash. The current valuations supporting the
$25 billion market capitalization are based on future expectations. While
Tesla’s product is beautiful and the company is a technological
pioneer, Tesla remains a speculative stock. The story holds water only with
projections of profitability and volumes well in excess of Tesla’s current
35,000 vehicles per year. Tesla Stock
Price Overview,Tesla’s share-price history since its 2010 IPO, when the
company was trading below $20.Tesla took off so fast as a stock and quickly
achieved an impressive market cap for a company that, in 2013, was selling
almost no cars, a stable price wasn’t in the picture. In 2015, the long-awaited
Model X SUV was added to the lineup, enhancing sales and giving Tesla a vehicle
to use to compete in the booming crossover market. But the Model X arrived
three years late, and its tremendous complexity meant that Tesla spent the
first half of 2016 sorting out expensive production issues. There current Stock
Quote (TSLA) 311.02 -7.87  (-2.468%) Tesla shares has risen 50% in
two months,Over the past seven days, the stock has declined by 10% because
investors are anticipating a new model. It’s no secret that Investors
confidence will continue to soar, then collapse,Tesla has always been a
volatile stock, enticing short-sellers from the cracks. Conversely, the bulls
charge on back of Musk’s lofty vision for the company. Basically Tesla has a
long way to fall.

Breaking down their swot analysis they have a 244
million dollar increase in shareholder’s equity and a 1 billion dollar increase
in liabilities.

Taking a look at some of their strengths and
weaknesses.Tesla is a pioneer, trailblazer, and revolutionizing the way we see
and use cars. They completely
dominate the market for low range electric vehicles.  The company has had a very fast growth rate
along the years since its conception. Tesla has unveiled a new model 3 that
expected to be a cheaper version of the model X and S, that will totally
revolutionize the car market and hopefully take part in fishing the company out
of debt . Tesla has spent a lot of its financial resource, for
investments for research and development for the transformative tech in their
vehicles.Tesla has been raising a lot of debt due to their rapid expansion and
has consequently sold stakes of their company to produce quick cash.Tesla has
nearly $2.5 billion of long-term debt and capital leases on its balance sheet,
which is about 72% of it’s total income. Interest payments on the company’s
debt are so, so enormous that they will continue to eat up future earnings of
the company.

Tesla Model 3 is prices much lower at, $35,000. This
model is will be in the same price range as lower end Mercedes-Benz and Audis,
making it quite affordable to the mass population.The anticipated can and will
determine if Tesla can significantly increase the number of cars they need to
produce in a few years.Tesla is building a Gigi factory, which enable the
company to build batteries for its vehicles with lower prices.

Tesla main threats are its competitors, as the
automotive market is very hectic one.Their competitors who are also in the
electronic car business have stronger financial power than them. Tesla might
not have enough funds to back up all its projects. Here are some key
aspects of Teslas marketing mix and why it is effective. One would say that the key element of the marketing
mix is their product or product development.Tesla has built its success on the
manufacturing well engineered vehicles that function on electric batteries.
Apart from this Tesla new technological advanced batteries are being sold at
prices that are convenient for customers of all sought. Tesla has done most of
sales online, but does quite a bit in stores too.

If you ask me Tesla is a greats stock here are some reasons why. It has
the best technology and strongest brand by far, in the auto market’s largest
growth sector.The value of Tesla’s stock increased past Ford and General Motors
to become the most valuable car company in the United States. The amount of Tesla’s yearly car production rate is about to explode from
100,000 cars today to 500,000 cars in 2018 because of the company’s
lower-priced Model 3. Even better, this doesn’t even take into account Tesla’s
newest energy storage business.

Powerwall is a daily used battery that is produced and marketed by Tesla
to provide power to homes or businesses for part of the day.Unlike every other
automaker, which use specialized large format Li-Ion cells, Tesla’s battery
pack is made up of thousands of inexpensive cells similar to those found in
laptops.

 

 

 

 

 

 

 

 

 

 

 

 

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