The launch of Tesla Motors’ very first consumer car Model 3 will determine the company’s success factor in the future. The company will be initiating launching its Model 3 from July 28th.
Currently, the market share of Tesla Motors stands at $59 billion. Astonishingly, it is $15bn more than Ford and $7bn more than General Motors!
Estimated production capacity by Tesla Motors
The chief exec Elon Musk announced via Twitter on Sunday that his company’s manufacturing process will be undergoing at a massive rate, 100 Model 3s planned for August and 1,500+ following. He forecasted an estimated production rate of 20,000 every month starting from December 2017.
Tesla’s Model 3 is the result of a highly ambitious plan of Elon Musk for turning his company into a manufacturer of electric cars for the mass market. So far, the company has designed extravagant vehicles in small numbers and have sold for $90,000 or above.
Tesla’s production capacity in comparison to GM
Tesla Motors manufactured 85,000 cars in 2016, whereas GM manufactured more than 9million units. However, the latest Model 3 will be sold for $35,000 for hiking sales output to 500,000 units every year from 2018 onwards.
Elon Musk assured his shareholders that Model 3’s production will initiate from this month at the company’s production plant located in Fremont, California. When concern for maintaining volume came up, Musk stated Tesla is currently concentrating its resources for further automation in its manufacturing operation before mass publicizing Model 3.
“There is no room at Fremont,”
Elon Musk continued,
“We are bursting at the seams.”
Tesla sat down with Chinese officials for opening a plant in Shanghai since China is responsible for making 15 percent of Tesla’s revenue last year.
Likely preparations for sustenance by Tesla
Tesla Motors has constructed its $5bn factory already in Nevada for Model 3 car batteries. In the beginning of 2017, the company sold stock options worth of $1bn. The Chinese company named Tencent Holdings had set aside 5% of Tesla’s stake option for itself.
Despite the acquisitions, the company continues to sustain losses frequently. The first quarter of this year generated loss worth of $397m; moreover, $282m loss incurred during the same time last year. But its profit accelerated reaching $2.7bn after 2016.
Tesla’s current value for stock option
The optimism surrounding Model 3 has hiked Tesla’s share by 67% in 2017, closing at $361.61 on Friday. I think its stock price will exceed $500 by the end of this year.
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