Tesla Motors is having the best week everMarch 03, 2014
If you recall, Tesla Motors was hot pretty much all summer long. In any of a number of high-profile articles published in the last six months, Tesla Motors was praised for everything from kicking off a trend in green car manufacturing, to being the safest car on the market (which ironically was followed by a couple weeks-worth of photos of the Model S engulfed in flames due to an issue with the car’s battery). Now, despite the ups and downs, Tesla Motors is, by any and all measures, “crushing it”.
Tesla Stock Soars Prompting Declaration of “America’s Favorite Car”
These headlines have been a bit, well…extreme. For the most part they deserve to be a bit hyperbolic. Tesla Motors’ stock has really taken off recently. As a matter of fact, a recent Bloomberg News article proclaimed that Tesla is the “highest flying automobile stock” in at least two decades.
This uptick in the company’s value comes on the heels of an announcement of Tesla’s plans to do more business in Asia, manufacture safer and more efficient batteries, and to build a new plant dedicated to the manufacture of these batteries (for which Texas is falling over itself to entice Tesla to build in their state). The uptick, unfortunately for Tesla Motors, doesn’t appear to stem from an increased demand for Tesla Model S cars. But that’s not to say that these aren’t popular vehicles, just that their popularity isn’t what’s driving the value of their stock. Speaking of stock values…
The Good News Keeps Coming for Tesla
Maybe it’s a case of brand-blindness, but Tesla’s stock rose 17% this week despite posting a $16 million dollar loss for the fourth quarter of 2013. That in and of itself is pretty solid and would make most of our collective weeks, but Tesla is on such a roll that, yes, there’s more. Tesla motors saw an impressive rise in their stock price this past year; a 619 percent increase that grew over a 12 month period. According to Bloomberg, no global automaker has seen their stock perform this well in the past 20 years.
Consumer Reports declared that the Tesla Model S was their Top Pick of 2014. This came as no surprise since the Model S earned the highest score ever in Consumer Reports’ automotive testing last spring. Consumer Reports acknowledged that the Tesla Model S was pricier than other cars they tested, but gave it high marks for its innovation, style, handling, and overall engineering. This top honor came in despite the several reports of Model S fires that were relatively high-profile in recent months. It seems that since Tesla appears to be fixing the problem, Consumer Reports was content to go ahead with the honors.
Model S Named “Most-Loved Car in America”
How does that even happen? The Georgia-based research firm Strategic Vision, LLC. conducted a survey to determine the cars to which consumers had the greatest emotional response. When the polling stopped and the numbers were counted, Strategic Vision announced that it was the Tesla Model S that had the most intense response. On a 1000 point scale, the Model S earned an impressive 852. The nearest competitor was the Hyundai Equus at 821. To give a better perspective, traditional luxury cars like the BMW 3-Series Coupe scored 695, BMW’s luxury sports vehicle the X6 scored 721, and the Audi A5 Coupe scored 693.
Tesla Motors Empire Expands
Tesla founder Elon Musk has announced that he plans to build a multi-billion dollar battery factory to support the growth of Tesla Motors, which relies heavily on lithium-ion batteries. Since there are limited supplies of car-sized li-ion batteries, Musk has decided it would be beneficial to produce them himself. While it seems like a natural choice, the business world is viewing the decision with some skepticism as both Toyota and GM have seen battery production issues affect their sales.
Finally, in an article in Forbes last month, Tesla also announced that they would be the first to produce a consumer-ready automated car. The particulars are still a bit murky, but as of right now their only major competition is Google who doesn’t have the benefit of being a car manufacturer (yet). This announcement comes amid rumors that Tesla may soon be working with Apple. It’s pure speculation at this point, but we could see a world where the Android/Apple rivalry extends to your car.
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