Will Tesla’s financial balloon burst?
(Photo : Justin Sullivan/Getty Images)
Tesla is one of the most innovative and successful American companies. Under the wing of PayPal co-creator Elon Musk, it has reached a success, which no other automobile company has ever seen. Just in ten years, Tesla became the most highly valued automobile manufacturer, with a capital of over $50 billion. Investors have jumped over one another to get their piece of the action, but will it backfire? Will problems soon arise?
BBC has released an interesting observation about the Tesla company, its success and what the future hold for it. It is no secret, that Tesla is the most successful automobile company in American history, but will its success be the reason for its downfall. In order to make money, a man should have money and a good idea. Many of rich people have been acquainted with the idea of Tesla and have decided to invest their money into the project, thus making it the biggest name in American automobile industry, but what does Tesla have to give in return?
After the reveal of the Tesla Model 3, hundreds and thousands of people had put down their orders for the newest electric car. This is a huge market, representing a large demand, but is the supply adequate? Over the past year, Tesla has released 80,000 units. This is just a fraction of the names, put down on the waiting list and some of the people may lose their patience. An even worse possibility, someone may take advantage of the large demand and fill up space with their own product. Tesla has taken measures into increasing productions, but will they satisfy the demand? In the end, the one suffering the most from this unfortunate event will be the investors, whose false belief in the endless growth of a company has led them into unprepared action.
In unrelated news, Auto Blog shared that Tesla has dropped the price of the Model S 75, some of the possible services and adds new standard content to its model. Those who want to update the power of their Tesla engines can do it far cheaply now. The range boost is $2,000 for the 60 (down from $9,000), and just $500 for the 70 (down from $3,500).