American electric car manufacturer, Tesla Motors Inc , has missed out on a deal to supply the Los Angeles Police Department (LAPD) with 100 electric vehicles. Bayerische Motoren Werke AG secured the deal, agreeing to lease 100 of its i3 electric plug-in vehicles. An article published on 08/06/2016 on the LA Times read “BMW is leasing 100 of its i3 all-electric plug-in vehicles, which the LAPD plans to use for community outreach and other police business — but not patrols or car chases. That will bring to almost 200 the number of electric vehicles the city is using in its various departments.”
Los Angeles is Becoming “Greener”
Charlie Beck, Police Chief at the LAPD said that they will continue to work with electric car developers & manufacturers “to create a more capable electric vehicle.” Furthermore, the Mayor of Los Angeles, Eric Garcetti, said “We should be thinking green in everything we do,” suggesting that Los Angeles will continue to adopt an eco-friendlier approach.
Tesla Motors Inc Attempts to Acquire Simbol Materials
Based in Salton Sea, Simbol Materials has claimed to have developed an innovative way of extracting lithium from the southern shore of the Salton Sea. Lithium is used in Tesla Motors Inc’s batteries, to store electrical energy as chemical energy (this makes it an essential material in the production of the firm’s electric cars.) In the aftermath of the Launch of the Model 3 (which has received around 400,000 reservations so far), it was reported that Tesla would need vast amounts of lithium in order to meet demand, potentially causing the price of lithium to rally.
CEO of Tesla Motors Inc , Elon Musk, has made Simbol Materials an offer of $325 million (paid in shares of Tesla.) As the markets closed on the 8th June, the company’s stock was up by 1.37%, trading at $235.52. Therefore, Elon Musk has essentially offered around 1.4 million shares in Tesla (to acquire Simbol Materials.)
Tesla Motors Inc Becomes the 10th Most Valuable Car Brand
The value of the VW brand fell due to the VW emissions scandal (which occurred towards the end of 2015.) The scandal damaged VW’s reputation, and resulted in a 20% decrease in their profits for the first quarter of 2016. Meanwhile, the company’s share price is near an all-time high, primarily because of the high levels of demand expressed for their Model 3 EV.
As a result, the firm was ranked above VW in the BrandZ report. The BrandZ report is published annually by the Milward Brown Group, and is based on brand value, not market capitalization. Tesla Motors Inc is transforming itself into a formidable company & is perhaps the no.1 producer of electric cars.