rtmark
LearnBonds.com

Tesla Motors Inc (TSLA) Curt “Master Plan” Is as Old as Twitter

Tesla Motors Inc Model X sneak peak

Tesla Motors Inc has been a remarkable success story so far, but if you are wondering where the company is heading, all you have to do is read a decade-old blog post from CEO Elon Musk. Tech Insider has dug up a nearly ten year’s old blog post – penned by Musk himself – that carries answers to all the answers about Tesla’s trajectory.

Tesla Motors Inc Model X

Musk’s secret ‘Master Plan’ for Tesla

Musk took to the firm’s blog back in 2006 to write ‘The Secret Tesla Motors Master Plan,’ and at the very bottom of that post, Musk has summed up the firm’s strategy and plan in just 31 words. The plan was posted on August 2 2006, just weeks after Twitter went live for the first time.

The strategy of the firm is as follows:

“Build sports car

Use that money to build an affordable car

Use that money to build an even more affordable car

While doing above, also provide zero emission electric power generation options

Don’t tell anyone.”

It seems that the original blog post described the firm pretty well; the first car from Tesla Motors Inc was an expensive electric sports car, and despite that Musk said building a wide range of models (including affordable family cars) is their long-term plans.

As per Musk, Tesla’s strategy was to enter high-end of the market as the customers are prepared to pay a premium. After this, it planned to “drive down” market in the fastest possible manner to “higher unit volume and lower prices with each successive model.”

In the blog, Musk has noted that the second car from the firm will be a sporty four-door family car, whose price will be almost half that of Tesla Roadster. And, the third model from the firm will be even more affordable. We could assume that he was referring to Model 3 as the third car, and not the Model X.

Struggling, but still a major force

Meanwhile, the firm is struggling with deadlines and production growth for its Model X. The firm has increased the production of the car, but chances are that it could be too late to have an impact on Q4 results. Though the production boost is below the expectations of some, the EV maker has the support of others.

Alex Gauna of JMP Securities is one among them, who initiated coverage on Tesla with a ‘Market Perform’ rating. The EV firm is still relatively new, but Gauna believes that it has played a major role in disrupting the energy storage and automotive markets.

Tesla Motors Inc is “boldly setting higher new standards in the areas of zero emission transportation, driving performance, battery manufacturing, and quality,” the analyst said. At 9.50 am EDT, Tesla shares are up 1.50% at $221.96.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

HTML Snippets Powered By : XYZScripts.com