Elon Musk, CEO of Tesla Motors Inc (NASDAQ:TSLA) has given a hint that the automobile company could soon launch a low priced entry level model. The launch might take up to three or four years. See: Tesla Motors, SolarCity; Musk Has The Magic Touch
Musk did not give much information on the car, but he said that car to be launched by Tesla Motors Inc (NASDAQ:TSLA) will be better than the Nissan Leaf, and will be made so that the range will be around 200 miles (322 km). Elon Musk further said that the Model S from Tesla, although a very fine car and desirable, it is very expensive. On the other hand, Nissan Leaf is low priced, but overall the car lacks the compelling features.
In order to overcome these shortages Musk is looking forward to bring an affordable electric vehicle that would be priced less than $40,000 (€30,915). According to Musk, launching such a model in the market is very important and he will not sell or leave the company until this model comes out.
Elon Musk said that Tesla Motors Inc (NASDAQ:TSLA) if acquired ever, will be taken over by anyone who is not related to the auto industry as the person will need billions of dollars in cash.
Tesla Motors Inc (TSLA) on the run
Tesla Motors Inc (NASDAQ:TSLA) has hogged all the lime light over the past few days after the company posted a profit for the first time in the first quarter of 2013.
The company has estimated that total of 21,000 vehicles will be sold in 2013, which is 1000 more than the previous expectations. The number reflects that Tesla Motors Inc (NASDAQ:TSLA) has begun using its production capacity to maximum, and there are no signs that the production might get affected due to any major production issues.
The increase in the sales estimation further reflects that the demand for the vehicle will be impressive, even though it is available at a high price and mainly focused towards the high end consumers.
After the positive first quarter result, it is expected that the SG&A expense will be somewhere around $190-$200 million. The reason behind this improvement is growth in the gross profit, which have been more than the administrative expenses such as office, information technology and various other costs in order to grow the efficiency of the business.
There is, however, some risks involved related to whether the company will be able to maintain its speed of growth in the future as well. The second quarter will provide an insight into the important factors fueling growth for Tesla Motors Inc (NASDAQ:TSLA).