Is Tesla's Profitable?

In this paper I intend to provide a sound financial analysis of Tesla Motors Incorporated. I will do so by calculating and providing liquidity, profitability, and solvency ratios and then evaluating those results. Assessment of these ratios will more or less define Tesla Motors’ abilities to meet its short-term debts and obligations (liquidity), performance in relation to sales, assets, and profits or losses (profitability), and the resulting income amount, after tax deductions, against the company’s liabilities (solvency). Additionally I will compare

Two parameters define Tesla’s industry competitive environment: what Tesla is today and what Tesla hopes to become in the near future. Today Tesla delivers an EV in the high-end luxury market ($70k+), but plans to deliver an affordable ($35K) small sized sedan in the next few years (Kaufman, 2015). The differences between Tesla’s current and future plans affect the threats and opportunities for potential entrants, industry competitors, and buyers in the near term and long term.

Tesla Motors is a global enterprise specializing in the design, production, and marketing of electric powered vehicles founded in 2003 by the young businessman, Elon Musk. Elon is well known for co-founding paypal, and now he amazes the world again with his incredible vision of Tesla Motors, and being the main product architect. Tesla Motors appeals to the environmentally friendly market, by currently being the only company to sell a zero-emission sports car. Tesla’s fundamental motive and selling point is producing only electric vehicles, as opposed to competing companies, producing a combination hybrid, or diesel car.

Tesla Motors was founded during the year of 2003 in silicon valley, with one goal; to create a more sustainable way to power vehicles. Tesla strives to produce high quality electric cars at an affordable price. Tesla produces three models; the model s, the model x and the model 3, a wide price range allows anyone to make the transition from gasoline powered vehicles to electric powered vehicles.

The paper provides a summary of Tesla Motors, the company outlined. Explaining the relationship between cost-volume-profit analysis is discussed as well as how the company is using this tool to maximize production and profit.

They sell electric vehicles, and electric vehicles only. The most popular car Tesla has released is the Model S, which is a luxury electric sedan that sells for $70,000. The Model S was voted the Motor Trend Car of 2013, and according to Tesla is one of the safest cars ever, but there is one big difference from any other electric car. The battery in each Tesla car is actually made up of thousands of lithium-ion cells, which is different than most electric vehicles. Electricity charges a battery to give the Model S power for a certain period of time, and is similar to a laptop or smartphone. In fact, the company uses lithium-ion batteries just like the type that powers laptops worldwide. This is the key difference between a Tesla electric car and a hybrid, it is all electric and has to be charged, but a car such as a Prius runs partially on gasoline but does not have to be charged. There are a few ways to charge the car. Tesla suggest you get a high power wall charger installed, and there are also supercharging stations across the United States and Canada. When fully charged, the Model S can travel at 55 miles per hour for up to 300 miles. The technology that is put in these cars is so far ahead of the competition; Tesla could very easily be the car company of the future.

Tesla Motors Inc is one of the leading companies for designs, develops, manufactures, and  selling electric cars and energy storage products. Founded in 2003 the major specialization of the company is software for automated cars, cars powered by electric energy and solar for home power.

Tesla Motors Inc. is an American public company which is known worldwide because of its experience in designing, manufacturing and also the selling of electric cars and electric components for vehicles. The motor was started back in the year 2003 in San Carlos, California in the United States (Teslamotors.com, 2014). The company had its headquarters in Palo Alto and at the time of its inception, Elon Musk was its chief executive officer (CEO) (Hunger, 2010).

Our innovation topic is the Tesla Model S. The model S is an innovative car with many innovative features. The three features we are going to focus on are the HEPA air filter, autopilot and electric engine. Other cars manufacturers don’t possess these features in their cars making Tesla motors the first of its kind. Tesla 's Model S is expensive and ranges from $70,000 to over $100,000. It can reach up to 265 miles fully charged. Its competitor Nissan 's Leaf can reach a merger 75 miles. In the next couple of years, Tesla would like to manufacture affordable vehicles that costs $40,000 to $45,000 with the same technology as that of the Model S.

Tesla Motors was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning, who financed the company until the Series A round of funding. Both men played active roles in the company 's early development prior to Elon Musk 's involvement. Tesla was founded in 2003 by engineers who had a mission to change the way the we thought of cars, and to convince our world that we can produce an electric car better than gasoline powered cars. In 1888 Nikola Tesla invented the first powertrain for a sports car built around an AC induction motor, which was later patented and inspired the company’s name. The Tesla Roadster was launched in 2008 with speeds of 0 to 60 in 3.7 seconds and with a range of 245 miles per hour. (Tesla Motors) Later in 2012 they launched Model S the first premium electric sedan. Robotic manufacturing of the Model S at the Tesla Factory in Fremont, California. Tesla manufactures the Model S in Fremont, California, in an assembly plant formerly operated by NUMMI, a defunct joint venture of Toyota and General Motors, now called Tesla Factory.

Tesla Motors Incorporated, an American company that designs, produces, and sells electric vehicles and their electric components, has become one of the fastest growing car companies in recent history. The company’s main goal was to start creating electric vehicles that were accessible and affordable to the public. Founded in 2003 and taking off successfully by 2009, Tesla Motors started selling the first mass-produced vehicle to use lithium-ion battery cells and hold a range of greater than 200 miles on just one charge. Along with building their own electric vehicle models, Tesla also builds electric powertrain components for vehicles from other automakers including cars such as the Toyota RAV4 electric vehicle. Tesla has begun to maximize

We can see that Tesla expanded their product line to target multiple consumers in different price range. The company started with high-end luxury sports car targeting early adaptors. On the second stage, Tesla has introduced Model S sedans that help them pass from difficult line from early adaptors to early majority. Moving forward, Tesla is introducing new Electric Vehicles (EV) cross over and many more affordable EV to target a larger majority. This strategy is helping Tesla move from one stage to the next one. The company is planning to release Model X in summer of 2015 and there are possibilities to introduce more affordable EV in the range of $30,000 dollars to compete with BMW 3 series in the fall of 2015.

Tesla Motors based in Palo Alto California, was founded in 2003 by Jeffrey B. Straubel, Elon R. Musk and Marc Tarpenning. This American company designs and manufactures electric-powered automobiles and operates as an Original Equipment Manufacturer (OEM), manufacturing electric-based power plant components for other automakers. Tesla is currently investing in the design of battery-efficient, cheaper, mass-market electric car models.

Tesla Motors Inc. was founded in 2003 by a group of engineers, one of whom is now the current CEO, Elon Musk. The company was founded on the ideals of not having to compromise to drive electric. These vehicles would be “better, quicker and more fun to drive than gasoline cars” (About Tesla). Tesla launched its first car in 2008, the Tesla Roadster. It is known as the first car to use a lithium-ion battery and revealed Tesla’s cutting-edge electric powertrain. Since then, Tesla has been able to expand with the Model S, Model X, and Model 3 (that has just begun production this year). Not only do they build electric cars but have expanded into scalable clean energy generation, storage products, and charging stations.

It was in 2006 when it introduced its first model, the Tesla Roadster. Do you know what kind of car was it? Yes, exactly, electric sports, like three years ago that wanted to market. The Tesla Roadster was a two-seater less than four meters, removable roof, genetic Lotus, with rear-wheel drive, with between 252 and 292 hp depending on the version, some 394 km of autonomy, and it was also very fast.