If Tesla’s business model is legitimate, there could be a lot of green ahead
Tesla ever more looks like a game changer.
November 2, 2011
Plug-in vehicles still have a long way to go before they are common place, and one of the first — well, the first — segments that plug-ins must march through is the luxury segment. And when it comes to the luxury segment, no company appears more interesting than Tesla Motors.
Today, Tesla beat expectations by posting better revenue numbers than expected and announcing that the Model S is solidly on track — which pushed the stock price up 72 cents in after hours trading.
If the Model S can simply hit the market on time and roughly close to pricing estimates, then Tesla’s business model starts to gain a solid foothold towards profitability. Tesla’s business model instantly becomes far more legitimate.
But that doesn’t even describe Tesla’s potential well.
Again, in the luxury segment, Tesla’s Model S seems best of breed, and with the ability to achieve 300 miles between charges, range anxiety just won’t be an issue.
Likewise, if Tesla can roll out its 160 mile base model for a little over 50,000, the Model S starts making the top level Chevy Volt seem almost irrelevant. It’s just a lot more car for not that much extra money.
In my opinion, Tesla is still a pretty speculative play, even though its a fantastic green investment if you believe in the Tesla story, but that’s up to you. Nevertheless, the upside potential of Tesla seems massive.
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