The Roller Coaster Success of Tesla Motors
Tesla Motors has been the feature of many headlines with less-than pleasant news. Terrifying stock drops and rumors of “financial ruin” have plagued the brand for a few years now, with Elon Musk taking repeated leaps of faith with his investments—most recently purchasing $20 million in stock.
Musk may be onto something, as Tesla Motors enters what may be a game-changing era in the automotive industry. In addition to being considered the number one “Most Innovative Company” of the year by Forbes, a Morgan Stanley analyst predicted a bright future for Tesla over the coming years, shooting the stock up once again from its valley.
The analyst note focussed on the brand’s potential in the self-driving electric vehicle and mobile-sharing industry. If it can successfully pivot into self-driving (a model with self-driving features is underway) and the ride sharing mobile app likes of Uber, the stock could potentially double.
Although faith in the self-driving industry has been shaky lately, a result of the few Google car-related accidents in Palo Alto, it seems that this prediction may not be far off. With some positioning Uber’s value as high as $50 billion, it would seem that the potential for a driver-less version could be vast. There would be no concerns over background checks or awkward conversations, no debates of wages. If Tesla could pull all of this off, their future is impressive.
In addition to this news, Tesla has been inching away at luxury competitors such as Audi, Mercedes and BMW. These popular luxury brands have tried to enter the hybrid game, but some experts argue it is too little too late to compete with Tesla. The traditional plug-in hybrid method that these brands have invested money in do little to curb their losses and aren’t very popular among consumers.
It is clear the continued progress and pitfalls of Tesla Motors will be an interesting one. Will Tesla start an automotive revolution fit for a science fiction film? Let’s see what happens.