Tesla is taking the biggest bet in its 13 year history.
Elon Musk, CEO of Tesla is said to be passing the night in his office. His goal is to do something bigger than his imagination. Telsa will be producing over 1 million electric vehicles for next year.
This is number is more than all the cars the company has ever produced since its started rolling out its ‘fueless-cars.’
How will the company get this done?
Elon Musk is spending USD 2 billion, that is USD 750 million more than his initial budget. The company plans to increase the size of its business by three fold. Sounds like a big bet indeed.
Tesla made a kill from its pre-order of its affordable Model 3 by raking over over 325,000 in orders. Each customer made a deposit of USD 1,000. The company made roughly 325 million and when total redemption of orders is accomplished, Tesla could get USD 14 billion in gross revenue from Model 3 alone.
This is the real deal, the reason behind Elon Musk’s sleepless nights. While Tesla actually recalled some 2,700 units of its cross-over SUVs last month, the company is going all out to ensure it stamps it leadership in the electric car market.
Elon Musk has not really surprised anyone with his huge bet on Tesla’s ambitious production target. His SpaceX is a bigger get that is paying off. After about eight failed attempts, last month, his all awaited SpaceX Falcon 9, a reusable space transportation rocket successfully launched and landed on ‘Of course I still love you’, a float-able platform in the Atlantic ocean.
Apple has also been rumoured to be making its own ‘iCar’ in a secret factory rumoured to be located in Austria. Apple has not denied nor confirmed the report, it is clear that major tech giants are looking at getting into the automotive business faster than any could imagine.
However, Tesla’s [NASDAQ: TSLA ] shares has gone up by 3% (trading at USD 214.93 per share) in the past weeks even with a marginal loss in its Q1 2016 result. The company’s 2015 revenue was USD 4.04 billion, asset was estimated at USD 8 billion.Investors have staked over USD 1 billion on Tesla’s shares so far.