Elon Musk’s Tesla takes on the second automobile brand in the U.S., Ford. What an interesting time for carmakers everywhere.
Maybe Tesla Inc. did not strike you as the profit-making type at first. Especially with its modest revenues in 2016 of seven million in 2016, and just around 4,050,00 in 2015. However, all 2017’s odds seem to be in favor of the all-electric company. From the new Model 3 to impressive sales and even passing Ford in market capitalization, here’s why we believe the future is Tesla’s.
This week has been loaded for Elon Musk’s company. Tesla’s market cap shares have climbed to about $48.2 billion, surpassing Ford by $3.1 billion. A shocking turn of events that had the CEO’s comment, he tweeted: ‘’Stormy weather in Shortville…’’
Tesla’s stock was with up over five percent after reporting more than 25,000 vehicles in the first quarter of the year. According to Bloomberg, the innovative company has recently reported a smaller-than-expected loss for the fourth quarter of 2016 and topped expectations for revenues. It lost $0.69 per share, which was less than Wall Street’s expectation for a loss of $1.04. Its revenues totaled $2.28 billion in comparison to a $2.13 billion forecast.
This came recently after Tesla has reported its 25,418 vehicles shipments, exceeding yet again forecasts of just 24,200 vehicles deliveries. Along with the updates on the upcoming release of Model 3, this Q1 results boosts the company’s first half target of 50,000 deliveries. The company shipped 13,450 Model S sedans and 11,550 Model X sport utility vehicles.
“It’s all about the Model 3 right now, but this is very good news,” Ben Kallo, an analyst at Robert W. Baird & Co., said in an interview. “25,000 units is the best we could have thought, and people are looking at Model 3 for growth.” (source: Bloomberg)
Musk has predicted that with Model 3 in the lineup, the company’s annual production will rise to 500,000 by 2018. We really don’t believe Musk is being overly ambitious!
Model 3 will be Tesla’s most affordable model to date. Its price range will start from $35,000 in comparison to $68,350 for a Model S. The model can reach 60 mph in less than 6 seconds, has a max range of 215 miles, and a capacity for five adult passengers.
When the car was announced earlier this year, over 325,000 all-electric car fans reserved theirs by putting down $1,000 deposits.
Tesla Motors is on top of Forbes reputable Innovative Companies list. Also, it’s number 1,568 in Global 2000, number 1,952 in sales and #306 in market value. Lastly, Tesla is number 113 in America’s best employer list of 2015.