Tesla Dominates Back to Back
Tesla dominates Back-to-Back
You know when I first heard about Tesla I did not picture the future of the automobile industry. In fact I didn’t think we were at the point of using sustainable energy to power automobiles. Obviously I was wrong about it and now Tesla’s market value surpassed General Motors and Ford back to back. After analysts predicted around 23,000 vehicles being sold in Q1 of 2017, Tesla has been able to record about 25,000 vehicles globally, a 69% increase YoY.
Tesla surpassed Ford on Monday April 3, 2017.
Tesla surpassed General Motors on Tuesday April 4, 2017
Investors are converting into bullish, as they believe Tesla has potential for dramatic growth. Tesla is becoming the story of the century. In fact Elon Musk promotes his company as a dynamic vehicle for growth regardless of the risks that come with it instead of being portrayed as a stable a reliable company. The achievement of selling more than 25,000 vehicles is the main drive for investors to invest causing the rise of the market value.
Comparison between the top 3 automakers:
Tesla Market Value: $52.98 billion @ $304 per share
General Motors Market Value: $49.49 billion @ $34.26 per share
Ford Market Value: $45.19 billion @ $11.37 per share
General Motor doesn’t show signs of improvement as the G.M. director rejected one of its investor’s proposals of creating two classes of stocks:
One that pays dividends
The second to directly tie earnings to the future growth in areas such as self-driving cars.
Although the Director of G.M. might have other incentives of achieving growth for the company, only time will tell. Until then, investors are jumping on the bandwagon for a full ride on Tesla’s success.
Tesla’s Gigafactory
At this point Tesla is on the road to making history. Although I am not very familiar with how their operations work, Tesla’s Gigafactory is very interesting. The term Gigafactory comes from the factory’s planned battery production capacity of 35 gigawatt-hours (GWh). If you didn’t know, “Giga” is a unit of measurement that represents bullions. One GWh is equivalent of generating one billion watts for one hour, which is one million times that of one kWh. The overall purpose of the Gigafactory is to produce battery cells at low costs using economies of scale, innovative manufactures, reduced waste, and simple optimization of manufacturing under one roof. Here is a picture of what the Gigafactory looks like:
As you may know, Tesla’s mission is to accelerate the worlds transition to sustainable energy by using the Gigafactory as its pioneer. In fact, as you look closely to the picture you notice that renewable energy resources will be used to power the factory. In order for Tesla’s Gigafactory to be a success, they have partnered with Panasonic, a leading technology company. This strategic partnership that Tesla formed will allow the flexibility, reliability and assurance from a great company like Panasonic to avoid disruptions within their supply chain. Tesla’s main objective is a planned production rate of 500,000 cars per year in order to change the automobile industry.