Don't Say We Didn't Tell You About Tesla

PUBLISHED: 05 Jun 2014 @ 15:52 | Comments (1) | More info about Lou Gutheil

Two years ago, 06 June 2012, Tesla Motors (NASDAQ:TSLA) share price was $29.22. By the same date in 2013 that share price has more than tripled to $97.35. It is currently trading at $206.25, after reaching a record high of $254.84 on 04 March 2014. The current price is up 1.21% from yesterday’s close of $203.99. If you have ignored the previous ADVFN articles about Tesla, it’s about time you read them. I shall list them at the end of this column.

Has Tesla Passed the Tipping Point?

Tesla has come along way since the world pointed its collective finger at founder and CEO Elon Musk and said, “It can’t be done.” Ironically, that indictment was leveled because of the failure of all the current automobile manufacturers who have been unsuccessful. From a practical perspective, the automotive infrastructure has not really wanted the cars of the future that they have all “envisioned” at one time or another. The manufacturers can’t afford to disrupt the hands that feed them.

There are three main reasons that Tesla has been able to successfully build and market a sustainable, affordable electric car:

Elon Musk is an industry outsider. True progress is typically made when an outsider disrupts the status quo with innovation.
Elon Musk is Elon Musk. You do not tell him that something cannot be done. Perhaps that is why his aerospace company, SpaceX, is also able to achieve what others have not.
Elon Musk was told “It can’t be done.” Those are the words that ignite his engines. Perhaps I should say they are words that charge his batteries.

There may be three reasons, but there appears to be a common denominator – Elon Musk

Delivering the Power

Building a practical, battery-powered vehicle is one thing. By itself, it is not enough. There has to be an availability of fuel. The first time I ever drove north of the arctic watershed, during a very cold winter, I saw a sign that said, “No gas for 200 km.” That’ll get you to take a look at the petrol gauge! Electric fuel may be more efficient, but it is no good if you can’t access it.

Tesla has not only manufactured a luxurious vehicle in both the S and the X models (the were hoping to name the next version the E model, but that’s another story), they have built an elaborate and effective network of charging stations in advance of putting cars on the road.

Delivering the Goods

Tesla is now actively pursuing a location – or locations – for its $5 billion “gigafactory” where low cost batteries for its cars will be produced. A site is expected to be chosen before the end of 2014.

As cars are being sold around the world, Tesla is building solar-powered supercharging stations in every country where to which the vehicles are being delivered. The company has recently started building charging stations in mainland China in Beijing and Shanghai.

Elon Musk has understood the big picture and he is painting his own version of it in very bright colors. The big pay day for investors is not far away.

Previous Tesla stories by ADVFN:

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