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From the advent of Tesla Motors, which has been paving the way in the all-electric vehicle business, the auto industry has been skeptical that they could successfully sustain growth. From the success of the company in the past few years it is clear that it can. With Tesla Motors’ success as a model, many automakers including Mercedes, Audi and BMW are all hopping aboard the electric bandwagon.
Tesla Motors has made several aggressive advances in the market in the past few years. They are currently building a network of superchargers across the U.S. The superchargers are solar powered, can complete a full charge in 30 minutes and are completely free. The company has 124 stations across the U.S. with complete East and West Coast coverage and coast-to-coast travel. They are successfully expanding their business to Europe and China and have built a number of superchargers there as well.
They have also struck a deal with the government of Nevada to build a new “Gigafactory.” The factory is set to begin production as soon as 2017. It is expected to reach peak production of 500,000 lithium-ion battery packs upon completion in 2020. The factory is expected to have a 100 billion dollar impact on the Nevada economy within the next 20 years. According to Elon Musk, the CEO and Chairman of Tesla Motors, the aim is to make complete use of renewable resources such as solar, wind and geothermal energy. The estimated cost of the factory is $5 billion.
The success of Tesla Motors has sparked a growing interest among many giants of the automobile industry. Other players in the auto industry including Mercedes, Audi, BMW, Range Rover and Porsche are all poised to make releases of all-electric vehicles within the next few years, and after paving the way Tesla Motors will face competition from the Audi Q-8 e-tron and the Porsche Pajun. BMW and Mercedes are working on developing larger luxury sedans and there are talks of Ford entering the race.
With the initial release of the Roadster, Tesla Motors grabbed the attention of the world market. It was the first automobile brought to market that used a lithium-ion battery with a range of greater than 200 miles per charge. 2,250 roadsters were sold worldwide between March 2008 and its discontinuation in 2011.
With the pricey release of the Roadster at over $100,000, the current goal of the company is to reduce the price of electric cars to a more affordable range. The Model S, unveiled in 2009 did just that. The 2014 Model S, priced from $69,900, is not lacking in futuristic technology or quality. It features the first dual electric motor technology in a production car. It comes with autopilot standard, and at 0 – 60 mph performance of 3.2 seconds it has succeeded in outperforming the McLaren F1.
With the success of the Model S, Tesla Motors has unveiled the Model X with estimated pricing at $30-35 thousand. This will be a major crossover into the middle-class price range. If its release is a success, it could mark a turning point not only for Tesla Motors, but for the entire auto industry.
Tesla Motors will announce earnings results for the end of the third quarter today after the markets close. Analysts expect a 47 percent increase in year-over-year revenue. With the public’s increasing interest in the green movement, Tesla Motors business model is paving the way into a successful new market with new innovative ideas and technologies in the electric vehicle industry.
By Isaiah Kuhle