Tesla Write Up

627 WordsFeb 17, 20182 Pages
Tesla Write Up After reading through Tesla’s audited 10K for the 2013-year end, we were very impressed with their performance and future projections. We find that Tesla has a bright future as a company because of their diverse and unique offerings. Tesla provides vehicles, electric vehicle engineering expertise, and operational structure differentiates that differentiate them from incumbent automobile manufacturers. As we forecasted the balance sheet and income statement for 2014-2018 we kept in mind both growth projections, risks and uncontrollable factors that could change in the coming years. After a record breaking 2013 year in automotive sales we expect sales continue to grow at 20% in 2014. The 10K projected they plan to deliver over 35,000 vehicles in 2014, which represents a 55% increase. However, due to risk and uncontrollable we believe a 20% growth in 2014 is conservative. For years 2015-2108, we expect an additional growth of 15%, 10%, 7% and 5%. These growth measures are large; however we take into consideration that future growth is dependent on consumer’s willingness to adopt electric vehicles. We find the 55% increase from the 10K to be over optimistic. The United States currently offers a federal tax credit of $7,500 for the purchase of alternative fuel vehicles. This goes towards a customer’s purchase of Tesla vehicles. This is a small incentive for customers and therefore we believe it leads to a small increase in sales each year. However, Tesla has
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