Pierre me as we take a deeper look

Pierre Lys

Tesla Motors

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Tesla is quite an interesting company that seems to
be ahead of the game In terms of car manufacturing. They have set out to try to
be the most cost efficient company there is. CEO Elon Musk has a wide range of
great ideas that have to do with saving our ecosystem and our money due to the
use of solar panels. Although Elon Musk is trying to save us money is he really
benefiting his company along the journey? Join me as we take a deeper look into
the company Tesla one of the few motors that are 100 percent made in the US. A
company for the future that focuses on energy innovation.

Tesla has stunned the market and flipped the
way critics feel about their product join me as we go over their improbable
stunning success story that leaves everyone wanting a Tesla Vehicle and critics
asking How safe is it really for the environment. The tesla vehicle is a zero
emissions vehicle that comes with no engine no gas tank and no exhaust. It runs
off of electricity from natural gases and coal. Tesla still guarantees that their cars are far more efficient safer and
cleaner to the environment then their competitors.

A group of engineer out of Silicon Valley who were
on a mission to prove that electric cars could be better than gasoline powered
cars founded tesla in 2003. They held a simple goal of making every vehicle
come with torque, power, safety and zero emissions while making them more
affordable year by year.

Tesla’s first engineer was a man that goes by the
name of Nikola Tesla as you can see this is where the company pickets up its
name from. He patented Teslas first powertrain motor in 1888 and it was built
around an AC motor. From this same motor the Tesla Roadster was created and
dropped in 2008. It hit amazing speeds of 60 mph in just 3.7 seconds. It had a
lithium ion battery that went as far as 245 miles per charge. This amazing
vehicle can be found in over 30 different countries today. The company is expanding its manufacturing footprint into other areas,
including in Tilburg, the Netherlands, where it has an assembly facility, and
Lathrop, California, where it has a specialized production plant.

In 2012 the world’s first electric sedan was
released by Tesla Motors. They named it the Model S. Being 100% electric the
redefined what it meant to own a sedan. The car goes from 0 to 60 within 5
seconds. The handling for the car is amazing. One single charge will give you
up to 265 miles. In its first year the car received outstanding rewards like a
5 Star safety rating from the U.S National Highway Traffic Safety
Administration. & Motor Trend’s 2013 car of the year. Not to mention this
amazing vehicle could hold up to 7 passengers and still managed to have 64
cubic feet of storage left. Leaving soccer moms and car poolers across the globe
proud. Talk about comfort and utility

Of course Tesla’s main focus point and product lines
don’t only include roofs they make solar paneled roofs for your home as well. The solar city Tesla roof is an amazing investment it’s a full roof that
is gorgeous highly durable and allows you to renew most of the energy that you
burn in your home or business

The solar roof consists of uniquely designed glass tiles that
complement the aesthetics of any home, embedded with the highest efficiency
photovoltaic cells These roofs are exclusively built to fit the design of your
choice according to the style of your home or business without even being able
to notice the photovoltaic cells. When you combine it with the tesla Powerwall
these roofs can supply your entire home with 100% renewable energy

 

Real Revenue Growth, over the last
four years ending 2016, this firm grew revenues at an astounding average of
103% per year. Sustainable Revenue
Growth, The entire amount of annual revenue growth is totally
unsustainable. In the last four years tussles sustainable growth has ranged
from-8% in 2012 to -47% in 2015 then back down to -35% in 2016

Pricing Policy, Tesla raised its markup on products
after being much too low in 2012 and prior. Since then, they have raised markup
to 1.57 times costs of goods sold to revenues from 1.17 in 2012. Operating expense control, Tesla’s
revenue increased 11% to $618 million in the first quarter of 2014 compared to
the first quarter of 2013. This is due to deliveries of the Model S. Tesla has
a 25% gross profit margin. This margin is almost twice that of GM, which had a
13% gross profit margin in 2013.  My thoughts on value At this point, we’ve seen that Tesla remains
unprofitable and doesn’t generate cash.  All
of Tesla’s praise is based off of future predictions and expectations. Tesla
needs to start generating some real profit. Although they are a technological
pioneer they still remain a risky stock. At one point they were only creating
35,000 vehicles per year. Tesla Stock
Price Overview, Tesla’s share-price history since its 2010 IPO, when the
company was trading below $20.Tesla took off so fast as a stock and quickly
achieved an impressive market cap for a company that, in 2013, was selling
almost no cars, a stable price wasn’t in the picture. The most current vehicle
added to the to the Tesla Motors arsenal was the highly anticipated Model X
SUV. The new model boosted sales and revenue while competing in the crossover
market even though it was three years late. The vehicle is so complexed Tesla
spent the first half of the year 2016 working out all of its costly manufacture
issues. There current Stock Quote (TSLA) 311.02 -7.87 (-2.468%) Tesla
shares has risen 50% in two months, over the past seven days, the stock has
declined by 10% because investors are anticipating a new model. It’s no
secret that Investors confidence will continue to soar, and then collapse,
Tesla has always been a volatile stock, enticing short-sellers from the cracks.
Conversely, the bulls charge on back of Musk’s lofty vision for the company. Basically
Tesla has a long way to fall. (n.d.). Retrieved October 20, 2017, from
https://www.tesla.com/about/press/releases/tesla-motors-opens-assembly-plant-tilburg-netherlands?redirect=no)

Breaking down their swat analysis they have a 244
million dollar increase in shareholder’s equity and a 1 billion dollar increase
in liabilities.

Taking a look at some of their strengths and
weaknesses.Tesla is a pioneer, trailblazer, and revolutionizing the way we see
and use cars. They completely
dominate the market for low range electric vehicles.  The company has had a very fast growth rate
along the years since its conception. Tesla has unveiled a new model 3 that
expected to be a cheaper version of the model X and S that will totally
revolutionize the car market and hopefully take part in fishing the company out
of debt. Tesla has spent a lot of its financial resource, for investments for
research and development for the transformative tech in their vehicles.Tesla
has been raising a lot of debt due to their rapid expansion and has
consequently sold stakes of their company to produce quick cash.Tesla has
nearly $2.5 billion of long-term debt and capital leases on its balance sheet,
which is about 72% of it’s total income. Interest payments on the company’s
debt are so, so enormous that they will continue to eat up future earnings of
the company.

Tesla Model 3 is prices much lower at, $35,000. This
model is will be in the same price range as lower end Mercedes-Benz and Audis,
making it quite affordable to the mass population.The anticipated can and will
determine if Tesla can significantly increase the number of cars they need to produce
in a few years.Tesla is building a Gigi factory, which enable the company to
build batteries for its vehicles with lower prices.  (Tesla, Inc. (Tesla). (n.d.). Retrieved
September 20, 2017, from
https://lobbyfacts.eu/representative/ecf537c1687c49338431dccec3fef6ec)

Tesla main threats are its competitors, as the
automotive market is very hectic one.Their competitors who are also in the
electronic car business have stronger financial power than them. Tesla might
not have enough funds to back up all its projects. Here are some key
aspects of Teslas marketing mix and why it is effective. One would say that the key element of the marketing
mix is their product or product development.Tesla has built its success on the
manufacturing well engineered vehicles that function on electric batteries.
Apart from this Tesla new technological advanced batteries are being sold at
prices that are convenient for customers of all sought. Tesla has done most of
sales online, but does quite a bit in stores too.

If you ask me Tesla is a greats stock here are some reasons why. It has
the best technology and strongest brand by far, in the auto market’s largest
growth sector.The value of Tesla’s stock increased past Ford and General Motors
to become the most valuable car company in the United States. The amount of Tesla’s yearly car production rate is about to explode from
100,000 cars today to 500,000 cars in 2018 because of the company’s
lower-priced Model 3. Even better, this doesn’t even take into account Tesla’s
newest energy storage business.

Powerwall is a daily used battery that is produced
and marketed by Tesla to provide power to homes or businesses for part of the
day.Unlike every other automaker, which use specialized large format Li-Ion
cells, Tesla’s battery pack is made up of thousands of inexpensive cells
similar to those found in laptops.

 (Tesla. (n.d.). Retrieved October
20, 2017, from https://www.gemenergy.com.au/batteries/tesla/)