Tesla has become America’s most valuable car company while losing almost a billion dollars in 2016 and selling a fraction of cars compared to GM and Ford. Their 6x Revenue market cap is a result of hope and desire to change the world in a mature Automotive market. But how?
This is what he has in store:
1- More than just Sedans
His Master Plan, Part Deux includes building bigger vehicles like SUVs, pickup trucks, semis, and buses. Applying Tesla’s design to these vehicles is suppose to set a new appearance standard while also reducing transport costs. The plan also includes intelligent route planning, which in the case of buses hopes to deliver passengers to their exact destination instead of to bus stops.
2- Solar panels to remove recharging complications
Musk also has plans to merge Tesla and SolarCity with the intent of developing a solar panel roof for the cars. The solar panels will power the batteries and remove the power station dependency. Additionally, Tesla will continue developing its autonomous driving by improving the existing system.
3- Car sharing
There are also plans to develop a Tesla fleet comprised of vehicles shared by different owners. Through the Tesla phone app, owners can add their car to the fleet and allow others to use it. Owners will be compensated, which will help offset the cost of the cars making Tesla’s more affordable. From Musk’s first plan for Tesla, we saw how important he believes it is to develop technology accessible to as many people as possible by trying to reduce the economic burden. With this plan, he upholds this belief.
The first plan written 10 years ago is now wrapping up. Does the Master Plan, Part Deux predict the next 10 years for Tesla? I’d say Musk’s track record is pretty good, but the shares are still over priced.
Reza Keshavarzi (Click to follow me on twitter, medium, facebook )
Also published on Medium.
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