WEALTH & TAX SPOTLIGHT: A Tech Company in the Spotlight

Mar 15, 2016 | Tony Byrne's View

TESLA

If you like cars and you like technology, you will already know a lot about Tesla, such is the impact the company has made on the market. Tesla started in 2003 and was the brainchild of the brilliant Elon Musk and a few other engineers from Silicon Valley. They wanted to prove that it was possible to make luxurious, desirable electric cars that performed better than cars powered by a traditional combustion engine. Tesla is the first successful American car Startup since Ford over 100 years ago!

Along with Elon Musk’s other companies such as SolarCity and SpaceX, Tesla aims to improve and expand the longevity of the human race. He wants us to all live in a more sustainable environment.

Tesla’s major breakthrough car was the Model S which was the world’s first premium electric sedan. Depending on the configuration, the car has room for 7 passengers, 2 boots for storage (as there is no old fashioned engine), an autopilot feature, it can go 0-60 mph in 2.8 seconds and can last for 330 miles on one charge. The only problem is the price tag!

This is a problem for Elon Musk who wants to make electric cars affordable for all and is why Tesla will be launching a small car, the Model 3. This model will be significantly cheaper.
The aim is to get the cost down to around $35,000, something they feel can achieve once they have finished building their $5 billion ‘gigafactory’ which will be one of the largest buildings in the world, built in the Nevada desert and run completely by renewable energy.

Additionally, Tesla also introduced the Model X in 2015. Like the Model S, this is a premium model and is aimed at people who want a SUV.

But Tesla is much more than just a car company. They are also planning to build electric charging points all over the world so their drivers can charge their Tesla’s for free! They also recently launched the ‘Powerwall’ which acts as a huge battery which can be attached to homes to store renewable energy from solar panels etc.

Tesla is yet to make a profit, but has a share market capitalisation of around $25 billion! A company like Tesla is hard to value though, as there is so much potential and at this stage everything they earn is pumped back into the business and re-invested.

One thing is certain though, you have to admire what they are trying to achieve!

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