Performance, Challenges And Projections : Tesla's Success

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2. Performance, Challenges and Projections Tesla’s success can be traced to superb management, and the futuristic vision of the management team. Even though Tesla is a fairly new company, the success of its products and the management of the firm have help it to become a profitable company in a relatively short period of time. In 2014, the company generated total revenues of $3,198,356,000, with a gross profit of $881,671,000 (Tesla Motors p. 46). The company main source of revenue came from selling electric vehicles, at the same time, the company experienced a high demand of model S vehicles, driven by the growth of Model S vehicle sales worldwide. The high sales were reflected on the firm’s gross margin for 2014, which is estimated at 27.6%, 5.9 points higher than previous year when margins were 22.7% (Tesla Motors p.46) In the stock market, company has been performing exceptionally, mostly due to its expansion into new markets and increase in sales and margins. Tesla was the first American automaker that went public after Ford. Its initial public offering (IPO) happened on June 29, 2010, under NASDAQ with the symbol TSLA. Tesla raised $224 million that allowed the company to invest in developing project and to invest in improving production capabilities of the company. As it was previously stated, due to the size of the company it usually has problems securing steady supply of part for it vehicles.
The initial cost of a common stock was $18 per share when company went

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