Could Tesla boost the Electric Car’s Momentum?
Tesla’s stock performance launched like a NASA spaceship after its stellar 1st quarter 10-Q performance that was released on May 10th 2013. Tesla’s recent 1st quarter net revenues skyrocketed in comparison to its 2012 totals. Additionally, Tesla posted its first-ever quarterly profit.
In three market sessions, Tesla rose from $69.65 to a 52 week high of $97.12.
I have been waiting a long time (mostly in vain) for the electric car market to finally take shape and present a game-changing challenge that will alter the auto industry as well as the alternative energy sector.
Could this be the game changer I have been hoping for?
Tesla have now outpaced Mitsubishi Motors and Fiat in terms of market value. Tesla has seen it’s fair share of struggles in its decade-long history of existence. In 2008, Tesla CEO Elon Musk had to dip into his own personal wealth in order to keep the firm alive.
Just recently, Total U.S electric car sales eclipsed the 100,000 milestone this month. This milestone was predicted by the advocacy group Plug In America. This milestone was partially due to the performance of the Tesla Model S. It is currently outpacing the Mercedes Benz S-Class and the BMW 7 series and Audi A8.
As it stands, the electric vehicle market has approached a growth of nearly 48% for 2013. Total electric car sales for the first four months of 2013 has more than doubled the total for the first four months of 2012. There seems to be some semblance of momentum for the electric car. However, there is still a long way to go.
The milestone of 100,000 electric vehicles is only 10% of the goal of 1,000,000 vehicles that President Obama envisioned would occur by 2015.
Ford sold as many of their F-Series trucks in a day then the combined sales of the Tesla S and the Nissan Leaf during the first quarter of 2013. Electric car sales have accounted for less than 1% of total car sales in the first four months.
While it may keep many away from the gas pump, it continues to be seen as a luxury item that is out of the mainstream and out of the price range for many individuals.
Certainly, the mass appeal will not be reached anytime soon if electric cars such as the Tesla continue to be sold at a price of $70,000 per year.
However, Tesla has clearly made the significant inroads in a very difficult terrain. The Tesla S Sedan has been given an outstanding score by Consumer Reports, thus reliability is not an issue. Tesla’s current success may be the trigger that could finally get the electric car industry going.