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Tesla: Tough Journey Ahead

April 12, 2014 | About:



Electric cars are in demand and this segment is supposed to grow at the rate of 7% by 2020, they are the future of sustainable, economical and definitely pollution free transportation. Several factors are fueling this growth, including low operational costs compared to gasoline-powered vehicles, government policy of zero emission, multiple new models from major automakers, and lower battery prices.

Tesla Motors Inc.(TSLA) is one of the leaders which led the revolution and rivalry among various automakers small or large to grab their market share. Tesla was one of the best opportunities in 2014 as electric automakers are being promoted by Government policies of tax incentives example is TESLA its stock price rose steeply about 272% in last two years.

Tesla offers 2 models model s and model x, Model s has 60 kWh microprocessor controlled, lithium-ion battery with a top speed of 230 mph(370 kmph) while model x comes with 85 kWh microprocessor controlled, lithium-ion with top speed of 300 mph(480 kmph) having features of battery swap an 8 years of unlimited and conditional warranty. The high end sedan costs around $71,000.

New Releases

Tesla upcoming Model X crossover (SUV) could be rolled out in 2014 in limited volumes and full-scale production by April 2015, The Model S batteries may have an option for 100/110 kWh .The company is striving hard and fast to get it done right .As the Model S and Model X are expensive TESLA aims at an affordable price tag of $30,000 considering the competition from the rivals and the high cost of the Model S and Model X by 2016.

Competitive market with more player in future

There is a tough competition in this segment. The point is that how the companies will attract their customers, either by speed, safety features or a good mileage at an affordable price.

As the market of Electric cars is witnessing growth, various established players also want to acquire a bigger player and not to be left out. Various companies have their own strategies and plant to attain more customers by influencing them with various features like price and safety not neglecting the running cost.

The Chevy Spark from GM is an affordable car with a speed of 82 miles and costs about $28,000, Chevrolet Volt and Ford Focus Electric gives a mileage of 38 miles and 76 miles, respectively with a cost tag of $35k to $40k.

The KIA motors will be rolling out KIA Soul for sale in overseas markets during the second half of 2014 it uses air cooled 27 kWh lithium ion batteries with a claim of 120 mph with top speed of 90 mph.

Mercedes-Benz B-Class that can attain a top speed of 100 Mph. It is powered by 174 horsepower which can cover 100 miles in full charged batteries.

BMW i3 is supposed to arrive in United States next year with a low price tag $42000 to $45000 and can travel about 93 miles, on a single charge with an optional range extender up till 186 miles.

Nissan and Renault are putting billions of dollars at the technology to expand their EV line-up by investing more than $5 billion and multiple models to com such as Nissan's Leaf and Renault's Zoe.

Toyota Prius plug-in hybrid with a price tag of $32,000 A plug-in hybrid-electric vehicle offers extended electric-only propulsion. This comes with a dual mode of operation with easy switch over from electric to conventional gas as and when needed

Honda Fit would return a city/highway MPG equivalent of 118 the Fit EV claims an average combined range of 82 miles with a low charging time.


Tesla might have seen a rosy past, but the future for Tesla in the electric car market is sure to face a stringent competition. The bigger established Automaker can take away a bigger share from Tesla in future.

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