Tesla is at a crossroads

A report released Tesla for the fourth quarter. Which path the company will show the numbers?

Tesla reported financial results for the fourth quarter. Most analysts expect from Elon musk, the head of the company, reports that the supply of cars was below the forecast.

The report reads:

"Our financial results for the fourth quarter reflect a failure in the supply, short-term decrease in performance in connection with the release of the model P85D (car with dual motor and all-wheel drive) and the functions of the autopilot and the impact of the strengthening of the dollar. Tesla works on the international market and uses the global supply chain, however, the main Assembly of the Model S is produced in North America, so a stronger dollar is having a small negative effect on profitability.

We have entered 2015 with more than 10 thousand orders for Model S and almost 20 thousand pre-orders for the Model X. In the fourth quarter, we had 11 627 vehicles, and succeeded, for the production of 35 thousand Model S in 2014."

In these figures the company is a manufacturer of electric Ferrari is a niche player with small volumes, producing one model: luxury sedan over 100 thousand dollars.

Well, not really Ferrari. The legend of the Italian automotive industry is no coincidence sells 7 thousand cars a year. The company maintains the highest level of demand for their famous cars. Anyone who wishes to join the ranks of Ferrari owners should look forward to this opportunity. It is a privilege.

This brilliant strategy ensures that the love the fans — they believe that the company will continue to create an equally incredible cars. She also made the Ferrari brand one of the largest in the world.

Millions of cars a year Tesla, according to the Mask, opposite to the middle of the 2020-ies wants to sell millions of cars. And Ferrari could increase production to meet demand, but deliberately does not. Parent company Fiat Chrysler, highlights the "prancing horse" into a separate company and over the next few years is going to raise the level of production up to 10 thousand cars a year.

But Tesla wants to put more cars, but can not — the company is gradually ramping up production, but at its disposal only one plant.

The problems Tesla has caused the assumption of the critics that demand for Model S is weakening, but probably it is not. There is a slight decrease in demand in China, but Musk explains that it rather a wrong idea about electric cars in General than on reducing the demand for Tesla cars. However, even before the release of the report, there have been reports that Musk is ready to fire the heads of representative offices in China due to the fact that last month the country has sold only about 120 cars.

It is clear that the company will be very difficult to raise the production level from the current 35 thousand to half a million by 2020, according to Musk. Meanwhile, the shares of Tesla though slightly decreased compared to record levels of mid-2014, traded at $200 — for an IPO in 2010, they were $17. This capitalization of $ 27 billion. General Motors market capitalization of $ 55 billion, but they are only in the U.S. last year sold 2 million cars and trucks.



Not securities, and the automaker yesterday at premarket, the shares of Tesla fell 0.6%. Several factors can be reasons for the decline:

• First, Musk has said several times that their price is too high. However, the markets are already accustomed to.
• Second, in 2013 and 2014 assessment the Tesla was happening at the financial level. The growth of its market capitalization was a reflection of faith in its future success.

Manufacturer of electric vehicles with a factory and a model that sell less than 50 thousand cars, some investors who bought it. CEO — the living embodiment of the innovative economy. Headquarters in Silicon valley. The car has no exhaust (what the company earns, by selling emissions credits in California).

It looks like the future!

But Tesla isn't building hovercrafts and time machines. Yes, innovative technology, but Tesla Model S — it's still four wheels and four doors. No more than a car. The car is a complex thing to Make a good car is not easy, but the Model S is, without a doubt a very good car. Tesla managed to create a car that is admired in the trade press, it is adored by the owners, and competitors dismantled cog to see what's inside.

Now the company needs to increase production of the Model S. By the end of 2015, the supply of the new crossover, the Model X, should be important. And in 2017 we should see the first mass car, Model 3, which Tesla is going from a niche player to become a full member of the world market and a competitor's leading car manufacturers.



Testing The Model X

It seemed that at the end of 2014, after the October presentation with the announcement of all-wheel drive version of Model S D, the future of the company became obvious to everyone. During a teleconference with analysts, Musk emphasized what a difficult task is the creation of the car — not to mention the revolutionary electric car, demand for that the last hundred years was zero.

Perhaps someday we will look at this period in the history of Tesla as an important transitional stage. Stock can at some time be frozen at $200 or cheaper and the company as other manufacturers start to talk about sales figures every month. The road to the future is likely to be thorny. Of course, today, everyone who makes financial or other stake in Tesla understands that the development from 35 thousand to half a million cars a year will require huge investments.

In other words, the growth of the company will be costly.

This does not mean that Tesla is in trouble, Periods of turbulence have happened before. There was a big crisis of 2008-2009, when the company was on the verge of collapse, then the transition from the first Roadster to the current range of the Model S. After the IPO, the share price for a long time did not grow.

Tesla is at a crossroads because he's growing up. The company transformed into an industrial Corporation and inevitably loses some of the aura of technology start-up.

Tesla is still waiting for a bright future.

But this week marks a turning point in the history of the company.

Source: insider.pro/EN/article/6590/