Tesla’s Big Bet On Battery’s Is Paying Off
The markets are clearly behind Musk’s electric car company, Tesla. With the stock having come under much speculation and mood movement, Tesla has finally passed the $300 mark, and it seems like the autotech company is set to only break higher barriers.
One look at the balance sheets, and Tesla isn’t anywhere close to deserving its position as being as valuable as Ford, whom sold 6.6 million cars in 2016, and GM, whom had sales of 10 million. Tesla in comparison – a paltry 76,000. GM & Ford showed profits, like they have for so many years. Tesla – another year of losses.
Yet as predicted, and stated earlier, Tesla crossed the $300 mark, making it more valuable than both General Motors and Ford.
What’s Tesla Got Working For Them.
Musk and Tesla made a big bet on batteries, which is now looking to bring back hefty returns for the company. A single Tesla vehicle, on average, requires 5,000 times the battery capacity as your typical smartphone. Hence, making batteries on a large scale is imperative, and that too to a production level that dwarfs the levels of today for smartphones.
With the Model 3 set for release this year, the success of this vehicle will determine the corporate future of Tesla. The car is set to be powered by the batteries produced by Tesla’s new Gigafactory. The successful launch of the Model 3 will ensure the Gigafactory continues to produce enough batteries for Tesla’s new mass market affordable vehicle, leaving all the major automobile companies scrambling to compete – with better designs and a battery production facility large enough to cater to the production demands.
While experts believe that most competitors will be able to catch up within a couple of years, Tesla’s lead will allow it to cement itself as the go-to brand for electric vehicles, as well as giving it a headstart in terms of further developing technologies that will continue to ensure its pole position in the autotech space.
Image Source: Tesla