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Tesla Motors: the Company's Characteristics and Perspectives

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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? Let us take a deeper look into the company Tesla one of the few motors that are 100 percent made in the USA company for the future that focuses on energy innovation.

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Tesla has stunned the market and flipped the way critics feel about their product join me as we go over their improbable stunning success story that leaves everyone wanting a Tesla Vehicle and critics asking How safe is it really for the environment. The tesla vehicle is a zero-emissions vehicle that comes with no engine no gas tank and no exhaust. It runs off of electricity from natural gases and coal. Tesla still guarantees that its cars are far more efficient safer and cleaner to the environment than their competitors.

A group of engineers out of Silicon Valley who were on a mission to prove that electric cars could be better than gasoline-powered cars founded tesla in 2003. They held a simple goal of making every vehicle come with torque, power, safety, and zero emissions while making them more affordable year by year.

Tesla’s first engineer was a man that goes by the name of Nikola Tesla as you can see this is where the company pickets up its name from. He patented Tesla’s first powertrain motor in 1888 and it was built around an AC motor. From this same motor, the Tesla Roadster was created and dropped in 2008. It hit amazing speeds of 60 mph in just 3.7 seconds. It had a lithium-ion battery that went as far as 245 miles per charge. This amazing vehicle can be found in over 30 different countries today. 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 the world’s first electric sedan was released by Tesla Motors. They named it the Model S. Being 100% electric the redefined what it meant to own a sedan. The car goes from 0 to 60 within 5 seconds. The handling of the car is amazing. One single charge will give you up to 265 miles. In its first year, the car received outstanding rewards like a 5 Star safety rating from the U.S National Highway Traffic Safety Administration. & Motor Trend’s 2013 car of the year. Not to mention this amazing vehicle could hold up to 7 passengers and still managed to have 64 cubic feet of storage left. Leaving soccer moms and carpoolers across the globe proud.

Comfort and Utility

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 solar city Tesla roof is an amazing investment it’s a full roof that is gorgeous highly durable and allows you to renew most of the energy that you burn in your 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 These roofs are exclusively built to fit the design of your choice according to the style of your home or business without even being able to notice the photovoltaic cells. When you combine it with the Tesla Powerwall these roofs can supply your 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 tussles, 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 the costs of goods sold to revenues from 1.17 in 2012. Operating expense control, Tesla’s revenue increased by 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. All of Tesla’s praise is based on future predictions and expectations. Tesla needs to start generating some real profit. Although they are a technological pioneer they still remain a risky stock. At one point they were only creating 35,000 vehicles per year.

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. The most current vehicle added to the Tesla Motors arsenal was the highly anticipated Model X SUV. The new model boosted sales and revenue while competing in the crossover market even though it was three years late. The vehicle is so complexed Tesla spent the first half of the year 2016 working out all of its costly manufacturing issues. There current Stock Quote (TSLA) 311.02 -7.87 (-2.468%) Tesla shares have 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, and then collapse, Tesla has always been a volatile stock, enticing short-sellers from the cracks. Conversely, the bulls charge on the back of Musk’s lofty vision for the company. Basically Tesla has a long way to fall. (n.d.). Retrieved October 20, 2017, from https://www.tesla.com/about/press/releases/tesla-motors-opens-assembly-plant-tilburg-netherlands?redirect=no)

Breaking down their SWAT 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 a low range of electric vehicles. The company has had a very fast growth rate over the years since its conception. Tesla has unveiled a new model 3 that expected to be a cheaper version of 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 resources, 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 its 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 priced 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 enables the company to build batteries for its vehicles at lower prices. (Tesla, Inc. (Tesla). (n.d.). Retrieved September 20, 2017, from Tesla’s main threats are its competitors, as the automotive market is a 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 Tesla’s marketing mix and why it is effective. One would say that the key elements of the marketing mix are 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’s new technological advanced batteries are being sold at prices that are convenient for customers of all sought. Tesla has done most of the 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 the strongest brand by far, in the auto market’s largest growth sector. The value of Tesla’s stock increased past Ford and it manufactures 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 uses specialized large format Li-Ion cells, Tesla’s battery pack is made up of thousands of inexpensive cells similar to those found on laptops. (Tesla. (n.d.). Retrieved October 20, 2017, from https://www.gemenergy.com.au/batteries/tesla/)

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