After a thoroughly successful year for American automobile maker and energy storage company Tesla Motors despite a couple of setbacks, company chief executive Elon Musk has now recently announced his initial plans for the coming year.
For 2017, one of Elon Musk’s plans is to push through with the merger between his company and SolarCity which they have acquired earlier this year for $2.6 billion, a price which was thought to be expensive by some investors. Despite this, Musk has continuously convinced Tesla’s shareholders of the wonderful outcomes which will be brought about by the merger deal.
An electric car from the company is also in the works as Musk announced that the Gigafactory’s full production in Nevada is set to be in full motion by 2018 with a sale of not less than 500,000 cars are expected from 2017 until 2018. The SolarCity acquisition is also to be involved in the production of these electric or solar powered cars in an effort to save SolarCity and raise Tesla’s revenue as well.
Despite the weak investor outlook for SolarCity, the company remains to be the top residential installer of solar power systems which might be a sign that it may not be too late for both companies.
Tesla’s Model 3 is also to be launched along with the plan to further integrate SolarCity into the automobile company as reservations for the said unit which is an all-electric Sedan has already gone underway with 373,000 advanced orders for the first week of the pre-order sale. Each unit of the Model 3 will sell for about $35,000.
In the middle of the company’s hotplate. CEO Musk is still facing an inquiry from the public eye on his private Space X program.
Tesla’s so-called failure with their autopilot program is still also under scrutiny from the public following the crash in Florida.
Regardless of the Elon Musk’s huge plans for the company going beyond their car manufacturing line and exploring other aspects which can be added to the company’s production list, Tesla still outran other automobile companies such as Audi and Porsche in the top spot when it comes to car reliability and owner satisfaction according to Consumer Report’s annual owner satisfaction survey.
In the said survey, 91% of the customers surveyed stated that they would buy cars from Tesla again and even the same model.
Following a positive upward climb for the past month, shares of American automobile company Tesla continues to surge up by about 1.64% touching the $212 level. Although it has declined a bit during Wednesday’s trading session, it has posted an intraday high of $212.23 the same trading session.
The record rise in the shares of the company eventually slid down by 0.52% on Tuesday’s close before it recovered the next trading session by 0.36% to $208.22.
The upward trend was supported prior to the autopilot plans by the news that Tesla has upgraded their credit lines by another $500 million despite CEO Elon Musk’s initial statement that an increase in debt would not be necessary for the company. Despite the earlier plan, the extended credit line boosted investor confidence leading the shares to surge. With the recent credit line update, Tesla’s credit line is now at around $1.8 billion which will strongly support their extravagant plans for the company including the SolarCity acquisition amongst many others.
Should the company want to ramp the success that it has amassed this year, a successful launch of the Model 3 should be pulled off by the company as it has received more than 300,000 pre-orders for the said model. The launch of the Model 3 will be placed at a risk should Tesla encounter any issues with their finances and if any updates on their autopilot system will fail to impress their shareholders and investors.