Ronnie05's Blog

Tesla: That moment in history where a new frontier is breached.

Posted in The Cars of the Future by Manas Ganguly on August 12, 2013

Tesla-Model-S-Race

It is that moment in history – when something is born and a new frontier is disrupted. Tesla Motors and Elon Musk are re-scripting automobiles with the Tesla S.

Whats common to – Steven Spielsberg, Steve Wozniak, Morgan Freeman, Will Smith, Demi Moore, Cameron Diaz, Ben Affleck, Seth Green, Craig Venter… and the list continues. These celebrities are backing Elon Musk’s Tesla S in a title fight for the Automobile future of the world. The R&D and Business teams at Tesla are out to prove the Tesla S’s superiority over any other Gasoline driven car –

1. They have announced a rapid expansion of its network of recharging stations
2. To reduce the entry cost, Tesla S is working on production of 2 cheaper models in the next 2 years
3. There’s also a leasing plan option that Tesla and Elon Musk is working upon.

In Tesla’s 10 years of existence, the company has suffered through embarrassing delays and leadership overhauls, verged on bankruptcy at least once, and been a favorite target of short sellers. In May it posted its first profitable quarter, with earnings of $11.2 million; sales for the first quarter rose 83 percent, to $562 million. Musk raised the 2013 sales estimate by a thousand vehicles to 21,000, an eightfold increase over 2012. A few weeks later, Tesla paid off a $465 million government loan early and then raised $1 billion from investors. The stock price has soared in the past six months, from $32 a share to $129.90 on July 15, before falling $18.21 in one day after Goldman Sachs published a skeptical report about the carmaker’s margins. Tesla has a market cap of about $13 billion, or about the size of Mazda Motor, which, according to a Bank of America Merrill Lynch estimate, will sell about 1.3 million vehicles globally in 2013.

Much to the naysayer’s chagrin and Elon Musk’s advantage – the Tesla S outdoes most of the commercial units of day in terms of performnace. The Model S does zero to 60 miles per hour in 4.2 seconds, has plenty of room (including a “frunk,” a second trunk under the hood), and gets the energy usage equivalent of 95 miles per gallon. Last November it became the first electric to win the Motor Trend Car of the Year award; in May, Consumer Reports gave the Model S its highest car rating ever—99 out of 100.

Tesla and Elon Musk are close to Apple and Jobs in 2007 – who took a leap of faith fundamentally redesigning the phone experience. The target is not to become the hottest car in Silicon Valley – The target is upending Ford, GM and the ExxonMobil.

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