Tesla is getting serious about its next vehicle, the highly anticipated Model X. So serious that the company is shutting down production of the Model S sedan for two weeks at its factory in Fremont, Calif. to install new equipment.
Tesla Motors Inc (NASDAQ:TSLA) has successfully been serving its premium electric Model S sedan to a niche global target market that can afford the $71,000 luxury. The company plans to roll out another premium Model X electric SUV in the third quarter next year, and a smaller mass-market Model 3 electric sedan two years later, which it hopes to price at about 50% of the starting price of a Model S.
Tesla Motors Inc.’s (NASDAQ:TSLA) 2015 product lineup is quite impressive and includes the upgraded Model S with the all-wheel drive and self-driving “autopilot” features, as well as the highly anticipated electric Model X crossover SUV. However, according to Consumer Reports, the company is boosting incentives on the 2014 Model S, including units put on display, before the release of the 2015 cars.
When Tesla Motors Inc (TSLA) went public in 2010, its story was similar to that of Alibaba Group Holding Ltd (BABA). The IPOs were oversubscribed, and high demand forced both firms to set prices above the initial ranges. In the case of Tesla, the shares were first expected at $14-16, but actually went for $17 apiece.
Daimler AG sold its stake in Tesla Motors Inc. as the maker of the battery-powered Model S sedan evolves from a startup into a competitor for the German automaker’s Mercedes-Benz luxury cars.
Daimler owned 3.9% of Palo Alto, California-based Tesla, according to data compiled by Bloomberg. The share sale generated about US$780 million in cash for the Stuttgart-based automaker, which will add to earnings before interest and taxes by a similar amount, the company said in a statement yesterday.
By Andrei Volgin:I admire Tesla Motors (TSLA) and wish the company all the best, but I strongly believe that its shares are greatly overvalued. As an investor, whenever I see that the market values a company several times more or less than my own assessment, I always ask two questions: What are the other investors missing? And, when are they going to realize that their expectations are wrong?
Tesla Motors has accomplished many remarkable things in its short life as a startup maker of electric cars. But, to clear up a common misperception, its supporters should understand that it has not--yet--made a profit in its core business: designing, building, and selling the Model S all-electric luxury sport sedan.
Tesla Motors Inc. (TSLA) expects to record annual sales of 500,000 vehicles by 2020, and that ambitious target will require the automaker to continue expanding in various foreign markets. The company, which has already expanded into China and Norway, is now rumored to be looking into starting operations out of Japan, where it expects to achieve cost savings while tapping an important market.