The Future of Tesla & Electric Vehicles

Tesla Charges Ahead

Quibbl asks what’s next for Elon Musk’s company and the electric vehicle movement 

By Andrew Prescott Kingsbury with Ben Purcell

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Tesla’s Elon Musk: A simple man with modest goals

Since its founding in 2003, Tesla Motors has resuscitated the electric car and electric vehicle (EV) industry from life-support status and emerged as a legitimate competitor in the automotive industry. With Elon Musk at the helm and a newly-launched, mass-market vehicle (the Model 3) priced like a Toyota Corolla, Tesla’s established supply chain and international presence make it the undisputed leader in the industry. But just how far can the company go?

Remember…

Consider…

When will Tesla Motors’ market cap rise above $70 billion? Quibbl here

  • Tesla Motors has a huge advantage in that federal and several state governments offer hefty tax incentives and credits to spur EV purchases. The federal tax credit is $7,500 and accompanying state incentives can range from $500 rebates (New York) all the way up to a $5,000 tax credit (Colorado).
  • Competition: There are other American electric vehicle companies that have sprouted up, such as Lucid and Fisker; in addition to companies that solely produce EVs, companies that primarily specialize in traditional ICE vehicles (Internal Combustion Engine) are also delving into the EV market with pure EV models and hybrid ICE/Electric models

The Road Ahead

Will Tesla announce it is making an all-electric pickup truck by the end of September? Quibbl here

Will Tesla accomplish its goal to produce 20,000 Model 3’s per month by December? Quibbl here

What’s Not To Like?

  • Not everyone is lauding Tesla’s success. Companies like GM, with their franchise dealership business model aren’t happy that Tesla is cutting out the middleman and selling directly to consumers from Tesla owned stores. There have been lawsuits and legislative efforts to prevent Tesla from being allowed to sell its cars in certain states.
  • There is also controversy around the fact that electric vehicles have a government-sponsored advantage with taxpayer-funded subsidies. Some people are against the subsidies and believe the free market should decide, while others believe the subsidies are necessary as a preliminary crutch (many interested in the impact that electric vehicles could have on climate change and the environment are included among this group) to get the industry up and running.

Will either chamber of Congress introduce legislation to end federal electric vehicle tax credits by the end of October? Quibbl here

  • From a financial perspective, stock market analyst Gene Munster believes Tesla is the next Apple. He asserts that Tesla’s Model 3 will revolutionize the automotive industry just like Apple’s first iPhone revamped the cell phone industry.

When will Tesla Motors’ stock price close above $400/share? Quibbl here

Will Tesla meet, beat or fall short of analysts’ 3rd quarter consensus earnings estimate of $2 lost per share? Quibbl here

What’s ahead for Tesla? For electric vehicles? For environmental policy? Quibbl about it all here.

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