To Appreciate Tesla We Need to Think Outside of the Box

To appreciate Tesla we need to think outside of the box
To appreciate Tesla we need to think outside of the box

Over the last few weeks Tesla Motors has been very much in the news, with an array of critics suggesting the company is failing to deliver on its promises. While yet to make a pre-tax profit, after delivering limited operating profits, the share price came under pressure recently amid suggestions that the company was losing money on each vehicle sold. However, to appreciate Tesla we need to take a long-term view and think outside of the box.

Investing for the future

The world we live in today demands instant results while taking a short-term view, as opposed to introducing long-term strategies. The rise and fall of share prices, as we have seen with Tesla, can not only impact the company’s ability to raise additional funds but also its reputation. While it would be incorrect to suggest that Tesla has made no mistakes, this is a company which is more forward-looking than any other technology group and has overcome an array of hurdles to get to this point.

If we take a step back, who would have thought that Tesla could have delivered a high spec electronic vehicle which has become the benchmark for electric cars?

Quote from ElectricForum.com:- "Could Apple ever compete with Tesla?"

Elon Musk is the key

Tesla’s flamboyant multibillionaire chief executive Elon Musk, is seen by many as the key to the future success of the company. This is a man who was made billions out of “thinking outside of the box” and continues to do so with an array of other ventures. The history of Tesla will show that he accidentally took full control after various partners fell by the wayside although the industry has certainly benefited.

Draconian rules in the U.S. do not allow car manufacturers to sell direct to the general public, although Elon Musk is trying to change this. The U.S. government, supportive on the surface, has not really gone out of its way to promote U.S. EV companies in overseas markets. Indeed, Tesla is currently lobbying the U.S. government to level the playing field between Chinese automotive groups and their U.S. counterparts.

A number of Chinese automotive groups have opened operations in the U.S., with indirect Chinese government funding, while Chinese regulations demand that U.S. operators in China need to partner with local companies. This is a sticking point, especially when you bear in mind Tesla’s recent deal with the Chinese authorities, and one which the U.S. government will need to address.

Educating consumers takes time

The vast majority of so-called “experts” did not believe that Tesla would change the electric vehicle market and effectively wrote the company off many years ago. However, Elon Musk has not only made Tesla into a multibillion dollar company but he has literally changed the way in which consumers view the electric vehicle market. To now turnaround and ridicule the company for surrendering short-term profits for long-term gain seems harsh in the extreme and very shortsighted.

True, Tesla may have disappointed in the short term against analyst expectations (which are effectively dictated by the company) but this is a company which thinks on his feet and looks at the longer term picture as opposed to a short-term boost. If the markets give Tesla the opportunity there is every chance the company will deliver and change the electric vehicle market forever.