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Today, there is no more successful electric car brand than Tesla. Tesla Motors was founded in 2004, and since their founding date, have had surprising success. While there have been other electric car companies, none have been as successful as Tesla.
Most notably, top rival Fisker who partnered with General Motors to use their facilities to produce their electric luxury car line, is facing bankruptcy thanks to lackluster sales and a failed interest in fully-electric vehicles. The company is no longer producing its electric car line. The US Department of Energy awarded many loans to several electric car start-ups a few years ago. Today, the DoE is calling in those loans, which has led to the bankruptcy of several electric start-ups, including Coda.
So, how is similar car brand Tesla doing so well? It is all thanks to their company profile. Although the company has been around for nearly 10 years, it actually just reported its first profitable quarter in early 2013. Today, the company of Tesla is valued at over $10 billion, which is more than Mitsubishi and Fiat.
Tesla has succeeded, in-part, thanks to their innovative and aspirational brand market. Tesla targeted elite customers since the very start. The Tesla Roadster, the company’s first model, cost over $100,000. The brand included the latest tech gadgets in addition to the electric engine. Tesla also focused on providing VIP service to all customers. To keep the company afloat while the electric vehicle demand increased, the company also brought in additional streams of revenue. Tesla partnered with Toyota and Mercedes-Benz for the creation of zero-emission vehicles.
Here is a Brief Summary of Tesla’s Success Model
2004: Private financing builds the first all-electric car from the ground up.
2008: The Roadster is struggling, but CEO Musk invests his own funds.
2010: Tesla receives a loan from the Department of Energy to help develop the Model S sedan.
2012: Tesla is able to pay of its loan thanks to sales of the Model S and Roadster.
2013: Tesla pulls its first profit of 11 million dollars, thanks, in-part, to the clean-air tax credit.
Late 2013: Profits increase the stock price of Tesla. Total worth of Tesla is in double-digit billions. Development of additional affordable models increases worth even further.
The Future of the Electric Car Market
Obviously Tesla is the clear electric car winner in today’s market. However, other established car brands also have their electric models (Honda Fit and Nissan Leaf, for example). Currently, there is still much fear surrounding electric cars. The lack of charging stations is a worry for many car buyers. Car repair costs are high for electric vehicles and few repair shops are qualified to fix electric cars. The cost of electric cars is still high and beyond many car buyer’s budget. Until these issues are addressed, it is likely that electric cars will remain a small market. However, if Tesla continues along the same path they have already begun, it is possible that the presence of all-electric cars is closer than ever before and just around the corner.