2016 has been a very important, and action-packed year for Tesla Motors Inc . In the first quarter (Q1) of 2016, on the 31/03/2016, Tesla unveiled their new electric vehicle, called the Model 3. It is their first car truly aimed at the mass market, and with a starting price of just $35,000 (before any government incentives), it is much cheaper than other Tesla EVs. Despite its affordability, it boasts relatively high-performance figures (it can do 0 – 60 MPH in less than 6 seconds.)
Tesla Motors Inc (TSLA)’s Nevada Gigafactory Set for Opening
Tesla Motors Inc has given out 12 “golden tickets” to Model 3 reservation holders, inviting them to the grand opening of the Nevada Gigafactory. The facility is scheduled to open on the 31/07/2016.
Many analysts have suggested that it will be hard for Tesla to turn a profit from the Model 3, as they are selling it at such a low price. However, Tesla is hoping to slash production costs by taking advantage of scale of economies (by using the Gigafactory.)
A page on the car maker’s website gives more details on the benefits that the facility offers. It reads “Tesla broke ground on the Gigafactory in June 2014 outside Sparks, Nevada, and we expect to begin cell production in 2017. By 2020, the Gigafactory will reach full capacity and produce more lithium ion batteries annually than were produced worldwide in 2013. In cooperation with Panasonic and other strategic partners, the Gigafactory will produce batteries for significantly less cost using economies of scale, innovative manufacturing, reduction of waste, and the simple optimization of locating most manufacturing process under one roof. We expect to drive down the per kilowatt hour (kWh) cost of our battery pack by more than 30 percent. The Gigafactory will also be powered by renewable energy sources, with the goal of achieving net zero energy.”
Autopilot Crashes May Have Hindered Tesla Motors Inc
Tesla’s famous autopilot system has been the source of some controversy this year, with a few crashes taking place, resulting in one fatality. The CEO of the firm, Elon Musk, has insisted that the drivers aren’t using the Autopilot system properly, e.g. they are not keeping their hands on the steering wheel. Reports have recently emerged that the driver of the Model S, which crashed in May 2016 in Florida was speeding when the incident occurred.
As the NASDAQ closed on the 28/07/2016, Tesla Motors Inc’s stock had gained by 0.93%, trading at $230.61 per share. The company’s market capitalization currently stands at $33.49 billion.