Is Tesla a major player in the transportation market? The answer is no. But will Tesla be? We read that automobile engineers at the major vehicle producers begin shaking all over when they think of the threat Tesla poses. So maybe they have magic.
Have not seen it yet and I could be wrong not being an auto engineer.
How is a stock market analyzing firm ranking Tesla versus competition?
|Company||TTM Sales $million||$/Share||Recommended Buy Price $/Share|
A casual glance says that Tesla share price is not based on actual sales but on investors belief that the company is something special. Note that the firm that provided the above data ventured that the actual Tesla share price was about 3.5 times their recommended buy price. The actual prices were greater than the recommend buy price for each of the companies shown in the table. But the relationship was in most cases about 1.3 or so. Some analysts believe that Tesla is looked at more of a Tech stock than and stock of a company making vehicles.
In August 2016, Elon Musk, the force behind the Tesla said that he plans to sell 500,000 vehicles by 2018 and one million by 2020. From my readings, I would guess the majority of analysts don’t think he will accomplish that goal.
Several years ago, Consumer Reports (CR) said theTesla was the best car ever. They still believe it to have superior performance but no longer rate it an unqualified success because of reports of lack of reliability. (The Toyota in my garage was purchased based upon CR’s reliability rating of the car—and CR got it right.
The lowest priced Tesla vehicle is the Model S. The S’s price starts at $69,500 and grows based upon the options the buyer elects to add. The new Model 3 is said to have a base price of $35,000.
CR posted some info on the likely cost of the new Model 3 which may disappoint some potential purchasers of Model 3. In an updated (8 August 17) posting CR said this
The base model will be black, with a Tesla-estimated range of 220 miles and 0-60 mph acceleration of 5.6 seconds. (If you want a color other than black, it’ll add $1,000.) Notable standard equipment counts WiFi and LTE internet connectivity, navigation, and the hardware to enable active safety systems, including eight cameras, forward radar, and a dozen ultrasonic sensors.
Initial Model 3 cars will feature the long-range battery (a $9,000 option) and the Premium Upgrades package (a $5,000 option), which adds heated, 12-way adjustable front seats; premium audio system; glass roof; folding/heated side mirrors; fog lamps; and a center console with covered storage and docking for two smartphones.
Enhanced Autopilot (a $5,000 option) bundles futuristic capabilities such as active cruise control, lane-keep assist, automatic lane changing and freeway exiting, and self parking. Tesla advises more such features will be added via software updates.
In the future, Tesla will offer an addition to Enhanced Autopilot that claims “full self-driving capability” for $3,000. The company says, “Model 3 will be capable of conducting trips with no action required by the person in the driver’s seat.” We are concerned that such a claim encourages distracted driving.
We expect typically equipped (early-delivery) cars will cost $57,700, which includes long-range battery, choice of color, Premium Upgrades package, Enhanced Autopilot, and 19-inch wheels.
A typically equipped model with the standard battery is expected to cost about $42,200, and comes with your choice of color and Enhanced Autopilot.
The free charging of the battery at Tesla stations will not extend to the Model 3
Car and Driver rated the new Model 3 the best of all the EV on the market. However that rating was based on a prototype. How valid is a prototype rating?
The US government tax credit of $7,500 has been helping Tesla sell its cars. This tax credit ends when a manufacturer reaches sales of 200.000 vehicles. It has been estimated that there have been over 100,000 Tesla sold using the tax credit. The impact of the subsides provided by governmental bodies on the sale of EVs is examined in the next posting.
How successful the Model 3 is, will define the future of the Tesla company.