“Uh, Tesla Motors will dominate the 1 percent EV market with $165,000 cars? Yup. Got it...a sound business model if there ever was one.”
“With the stock growing in value from $32 at the start of 2013 to where it trades today, around $147, it’s hard to imagine there’s much upside left in the name.” (from the article)
Tesla knows it’s a niche market. They also know that government will be involved in the market. They started with a luxury/sports model and plan to move towards a more base model in time. How is this a poor business plan?
Uh, Tesla Motors will dominate the 1 percent EV market with $165,000 cars? Yup. Got it...a sound business model if there ever was one.
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true it won’t happen that way. Tesla’s big promise is to lower the price of their 80k car to 30k —while keeping the same battery performance—in 2016.
That will make the tesla available to a much wider audience and push their sales from 10’s of thousands to 100’s of thousands. Still a drop in the bucket. But the major car companies will be forced to invest even more money in electric cars.