The Tesla (NASDAQ:TSLA) Survival Kit


As Tesla (NASDAQ:TSLA) attains new heights of success, the company been labeled the Apple (NASDAQ:APPL) of the auto industry. In March, the electric car company’s trading was $212.Ever since then, the company’s low was set at $179 and high at $291. The investors have enjoyed this ride along side with Tesla (NASDAQ:TSLA) at a 4.7% yield. But as the last four years have shown gas prices going down, the company might have to reassess and adjust its strategies if it still wants its success and potential to double.

According to Eugene speculators, in order to stand in competition with gasoline powered car, Tesla (NASDAQ:TSLA) needs to produce something up to that mark and for that to happen, the cost of lithium ion batteries need to go down, dealership markups needs to be cut off and a worldwide system of charging stations have to be up and running. Let’s look into the possibility of how it would affect Tesla (NASDAQ:TSLA).

–          Reducing cost of Lithium ion batteries:  Towards the end of 2014, it was decided that Nevada would be the site of the lithium ion battery giga factory. The aim of constructing a $5 billion factory was to bring down the cost of lithium ion batteries by 30% from 2007 onwards. Plans are that by 2020, the factory will be producing a substantial number of batteries annually to cater to 500,000 Tesla (NASDAQ:TSLA) cars. The company was a great way to boost Nevada’s economy, and is expected to make a $100 billion impact on the economy within the next 20 years. Other cities like Texas, Arizona and New Mexico also stood in competition to win the gaga factory package along with benefits worth $1.25 billion.

–          Finishing off Car Dealership Markups: This is another technique to boost up competition between gasoline cars and Tesla (NASDAQ:TSLA) cars, to eliminate the middle man. Even though Tesla (NASDAQ:TSLA) is already applying this method is 26 states but there are still remaining 5, Arizona, Texas, Virginia, Maryland and New Jersey where direct sales are banned. Car dealership is a popular way to be profitable hence Tesla (NASDAQ:TSLA) is trying to find a way around it. Arguments supporting the dealership business don’t hold much ground and are only into place due to strong support. Tesla (NASDAQ:TSLA) has fought off the dealership law in some states but in some it has find a way around it. In these states, customers can still legally purchase a Tesla (NASDAQ:TSLA) through the company if they place their order online.

–          Bringing a nationwide charging system into play: at this point there are 135 supercharger stations in North America, which allow Tesla (NASDAQ:TSLA) owners to recharge their cars free of cost for life. These station provide sufficient current that charges the car half way in as little as 20 minutes. Tesla (NASDAQ:TSLA) plans to bring more such stations to live and claims that by the end of 2014, it would have 80% of the US covered and by the end of 2015, 98% will be catered for.