The Future of Tesla and the Elon Musk Effect

by Sophia Lee SEO

At the start of the 21st century, the automobile industry was still in its infancy. Even though cars had been invented in the late 19th century, mass production of cars didn’t begin until the 1920s. The world was in the early stages of a car revolution, which is why Tesla Motors was founded in 2003. With the vision of producing a “modern, mass-market car” that was also “affordable and attainable by the average person,” the company was founded by Elon Musk, the CEO of SpaceX. Tesla’s first car was the Roadster, which was an all-electric sports car that was based on a Lotus Elise. It was launched in 2008 at an advertised price of $55,000. Two years later, the company announced that they were expanding the factory in Fremont, California by 40%. In addition, they added a second production line, which was a testament to their production capability. After the financial crisis of 2008, the company’s revenues took a hit, which is why Tesla received $465 million in government loans. However, things turned around for the company in 2010, when the Roadster was updated and became the Tesla Model S. The new car was priced at $70,000, and it came with a 310-mile range. Even though Tesla struggled with the transition from cars to cars that were also functional as a mobile phone, the Roadster and the Model S succeeded

What is Tesla’s Business Model?

Tesla sells only two types of vehicles – the Model S, which is an all-electric luxury sedan, and the Model X, which is an all-electric SUV. Both vehicles cost from $70,000 and up. As of December 31, 2017, the company had sold over 80,000 Model S cars and 500,000 Model X cars. The customers for these vehicles are mostly car-owning executives and entrepreneurs who want a “green” car. However, Tesla does not make a profit on these sales because the cost of producing each car is about $50,000. Instead, Tesla uses the profit from selling the car to finance their development. The goal of this financing is to bring down the cost of producing the Model 3 and Tesla’s other cars so that they become more affordable to the “average person.” Tesla’s Model 3 aims to change the future of the automobile industry by making electric cars affordable.

Tesla’s Latest Model – The Model 3

Tesla has been developing the Model 3, which is a $35,000 car, since the Model S was launched in 2012. In July 2017, Tesla began taking orders for the Model 3 and said that they had more than 400,000 people who had placed a deposit of more than $1,000,000. The goal of the Model 3 is to make the automobile affordable to the “average person.” To do this, the Model 3 will have a price of $35,000, which is about a third of what an average American household earns per year. The company also aims to make the Model 3 available to as many people as possible by making it a standard car that can be ordered from a factory. The automobile industry has been stuck on a single manufacturing process and a single distribution model for more than a century. By expanding its production, Tesla has the opportunity to bring the Model 3 to more people. This $35,000 car could revolutionize the industry if Tesla is able to make it affordable enough for the average person.

Tesla’s Future: Self-Driving Cars

Tesla stock forecast looks bright also because of one of the most anticipated developments for Tesla is the launch of a self-driving car. Elon Musk, the CEO of Tesla, has said that they aim to have a full self-driving car by 2019. To make this a reality, Tesla has been testing their autonomous driving system by equipping their Model S cars with cameras, radar, and sensors. They have also been testing the system in a place where they can drive autonomously around a closed-off area. The next step is to equip the cars with the software that will allow them to operate autonomously without any human intervention. To make this possible, Tesla has partnered with MobileEye, which is a company that specializes in providing security systems for autonomous vehicles. The partnership enables Tesla to equip its cars with a 360-degree vision system and avoid collisions. However, Tesla still has a long way to go before they can launch a fully autonomous vehicle. This can only happen when all of the issues related to autonomous driving are solved. For instance, there are many questions related to mapping, perception, and decision-making that need to be addressed. Tesla is also facing competition from other companies that are also trying to make their self-driving cars.

Tesla’s Future: Solar Power and Power Storage

Tesla is also making an effort to increase its production of solar panels and make it a central part of its business model. In January 2017, Tesla announced that it had become the largest installer of solar panels in the U.S. The company also unveiled its new solar roof product. Like the Model 3, the solar roof is also supposed to make the owning of a Tesla car more affordable. In fact, Tesla’s CEO said that it will be possible to get the solar roof for $1 per day. The idea behind this product is to replace the traditional roof with a Tesla-designed product that generates electricity while the Tesla car is parked. This means that the car owner will not have to pay for electricity generated by a non-Tesla roof. The other benefit of the solar roof is that it stores power generated by the sun and uses it during the night. This means that power generated by the sun can be used at any time, even when the car owner is not at home.

Tesla’s Future: The Elon Musk Effect

Tesla’s CEO, Elon Musk, is well-known for making bold predictions and building companies that are changing the way we live. The company he founded, SpaceX, has become the most successful commercial space program in history. It has made it possible for people to travel to the Moon and return safely. SpaceX is also well-known for making bold predictions about the future of space exploration. Elon Musk said that there is a high chance that SpaceX will send humans to Mars in the next 10 to 12 years. This kind of boldness is what made Tesla an attractive investment for Musk.

Conclusion

Tesla - one of the best stocks to buy now according to many analysts - has changed the way people look at cars and the future of the automobile industry. However, the company still has a long way to go before they can change the way we live. Highlights of the company’s vision include producing a $35,000 car, making it possible to get the car for $1 per day, and they aim to make the car fully autonomous by 2019.