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This Automobile Company May Revamp Your Portfolio for Growth

February 10, 2014 | About:
abirk

abirk

3 followers

Tesla Motors Inc. (TSLA) designs, develops, manufactures and sells electric vehicles and advanced electric vehicle powertrain components. Tesla cars are manufactured in a far different manner than traditional vehicles. They have one standard battery platform on which they can mount varying motors and bodies. The company stands at an advantage in achieving production efficiencies with its swappable production strategy. The company is approaching automotive design, production and distribution in an entirely new fashion compared to the industry stalwarts.

Truly Transforming the Automobile Industry

Tesla is producing increasingly affordable electric vehicles that are perhaps even more convenient (and reliable) than gasoline or hybrid vehicles. Tesla is truly aiming to transform the automotive industry, and it has a pretty convincing road map for how that transformation will occur. In 2014 Tesla is planning more cars than ever before. CEO Elon Musk is confident that Tesla can hit an annualized rate of deliveries that exceeds 40,000 cars per year by late 2014. Tesla will begin deliveries of its Model X in late 2014. Thanks to the success of its Model S, there's already a strong brand presence for the company. This should help boost sales of its crossover vehicle as more Model X cars hit the road later this year.

Blending the benefits of a minivan with the performance of a sports car, the Model X promises to be a big hit with drivers in 2014. Built on the same drivetrain as Tesla's Model S, the Model X can go from zero to 60 miles per hour in 4.4 seconds. Tesla first unveiled the all-electric SUV in February 2012, and last year pushed production of the Model X into late 2014 to accommodate sales of its Model S vehicles. Moreover, shares of Tesla should pull ahead later in the year if Tesla can deliver on its revised promise of getting the Model X on the road in 2014.

China Being an Important Market

As the world's biggest market for premium sedans, China is an important market for Tesla. It has launched a soft opening of its Beijing showroom in the region that was greeted with great fanfare. The company has already received hundreds of orders for its Model S in Hong Kong. It is one of the most innovative and forward-thinking companies in the auto industry today.

Tesla’s future is largely dependent on its ability to continue innovating. U.S. markets are saturated. Tesla and other automakers are looking for international customers for explosive growth, particularly in China. An investor may get rich with this growing trend as the automakers are poised to surge with China’s middle class. China is already the world's largest auto market — and it's set to grow even bigger in coming years.

Recent Findings by a Survey

Based on a survey of 45 million used car listings for sale/sold in the U.S., the average used Model S is said to be going for a whopping $99,734, which is considerably richer than its model-year 2013 base price of $69,900. With a used-market average estimated to be 20 percent higher than its original sticker price, the Model S is the clear winner in resale values among the industry’s top-selling electric cars. One reason used Model S prices are so high is that a majority of those sold last year tended to be of the higher-end model with the optional larger battery pack.

Expanding Supercharger Network in Europe

The accelerated energizing of Superchargers in Germany (Wilnsdorf, Bad Rappenau, Aichstetten and Jettingen), Switzerland (Lully), Austria (St. Anton) and the Netherlands (Zevenaar and Oosterhout) represents a new milestone in the expansion of the European network. In Germany, Superchargers connect Cologne, Frankfurt, Stuttgart and Munich. They also connect the German network to Amsterdam, Zurich and Innsbruck. In the Netherlands, energized routes connect Amsterdam to Cologne and Brussels, and in Switzerland the stations connect Zurich and Geneva.

By the end of March 2014, 50% of the German population will live within 320 kilometers of a Supercharger, and 100% of the population will be covered by the end of the year.

To End

Entering the vehicle market without the normal constraints and biases that bog down traditional manufacturers has helped this California-based company become a wild success in the car market. All these factors are building the foundation for the company's eventual mass-market affordable car. And each factor helps to secure Tesla's spot among the big automotive companies, and change the auto industry forever.

Meanwhile, the demand for Tesla’s cars remains strong on robust performance and impressive design of its products. Model S ensures the least possibility of injury to passengers among all major car makes and models in the U.S. The car won a five-star vehicle safety rating from the National Highway Traffic Safety Administration, which is awarded to only 1% of the cars tested.


Rating: 3.9/5 (15 votes)

Comments

shaved_head_and_balls
Shaved_head_and_balls - 10 months ago

A story stock led by an overly promotional CEO in search of Greater Fools. No dfferent than 3D printer companies, social media stocks, biotech IPOs, etc. Will it earn its way into the current price of $200/share before a recession drags it down to $30/share. Not likely.

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