Tesla Motors, founded in the year 2003 in San Carlos, California, is an automaker and energy storage company founded by Elon Musk, Martin Eberhard, Marc Tarpenning, JB Straubel and Ian Wright. Despite the company being fairly new in comparison to the more popular and memorable companies like Toyota, Ford, Hyundai and so on, Tesla Motors has been doing its fair share of work in order to stay in the competition.
Its automobiles are known for their reliability and ability to store and save energy during travels, but owning an automaker and energy storage company takes far more work especially when compared to othert big name companies. Tesla Motors is no different, and now, among other various obstacles in the path, Tesla Motors has three major tests it must take and the importance of passing them all is highly imperative.
As reported by Business Insider, it has been nearly a decade since Elon Musk, current CEO of the company, took the reigns. Within those 10 years, the company has seen its fair share of ups and downs. From an almost crippling bankruptcy in 2008 to $30-billion-plus market cap, the company's story is considered by Business Insider as one of the greatest triumphs in modern American business. Because the auto industry is so well established and difficult to get into, this makes it even more serious if Elon Musk wants to continue this stride.
According to Global Times, the major tests are as follows: Launching a Model 3 on schedule, Integrating SolarCity with Tesla's other lines of business, and controlling a money bake and supporting a batch price. For the first test, while the Model 3 is considered to be designed and engineered to a price-point. It's crucial that Tesla passes the test since nearly 400,000 pre-orders, a $1,000 each, means that a Model 3 represents a vast volume of destiny revenue.
For the second test, despite SolarCity's owner being the cousin of Elon Musk himself, it will still show relative difficulty in trying to lace together with Tesla's other lines of business. SolarCity, with its major involvements in solar panels, is still a weakened player in the solar market. However, Musk's plans for a solar roof shown in 2016 may end up helping SolarCity in the long run. For Musk, however, failure is not an option.
For the third and final test, it seems to be in the middle between the first test (the easiest) and the second test (the hardest). The main issue driving this test's difficulty is cash, since cars are a cash-intensive business. With talk of shares, production costs, and so on, Tesla Motors struggles to push forward but cannot afford failure. While other companies would often see this as a simple trivial matter, Tesla Motors battles with it more than other companies.
The only thing that might be the great downfall for Tesla Motors is if the two difficulties, SolarCity and the first test, combine to become a greater difficulty that will overwhelm Tesla Motors. If Elon Musk has any say in the year to come, he must remain strong and continue to push forward in his endeavors.
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