How Tesla Gained The Top Rank In The Car Industry?
If I had told you ten years ago that Tesla would emerge the most valuable car company in the whole universe, a lot of people would have seen it as a dream that would never come true. Today, the dream that seemed possible has been achieved. The company has also been ranked above other popular car companies such as Toyota, Ford, Volkswagen, Honda, and others. These achievements have posed the question of how did Elon Musk achieve this?
Hello, and welcome. Today you get to explore how Tesla gained the top rank in the car industry. If you are a regular to my blog, you will know how much I am a Tesla fan. There is so much to talk about them, and you can find out my opinion on their stock in my post “How Tesla stock is making its investors millionaires.” If you haven’t yet subscribed, then you should be doing that right away or you could be missing out on exceedingly important topics I bring out regularly. I get a lot of motivation to do more by your likes and comments, so be sure to leave them. Let’s get to the main topic.
The Tesla Story
With many people doubting his success and many not even believing the company would go to the extent of becoming the most valuable car company in the world, the height of Elon’s success has proved them wrong. About 12 years ago, many biggest investors worldwide never saw the Tesla stock as one to add to one’s portfolio.
“You don’t want to own this stock; you don’t want to own this car! Heck, you don’t even want to rent it”. This is a quote from a popular investor, Jim Cramer. Today, the most valuable car company has many celebrities with a Tesla product in their garage.
Tesla’s success was built from scratch. In 2003, they founded a company that nobody believed would stand the test of time. Nobody believed that cars would go electrical, not to talk of rising to become the world’s biggest company. Marc Tarpenning and Martin Eberhard, both being engineers in the company, had the belief that if cars could go electrical, it would be better off than gasoline-powered vehicles.
Many laughed at them, seeing it as a dream that would not be achieved until Elon Musk came on board. He was the brain that led to the success of PayPal and Zip2. Not many believed this would come to reality; now, he’s about to achieve the same with Tesla.
The success of Elon Musk was traceable to the two key things he did.
Firstly, he aimed at producing a vehicle that can sustain buyers without causing pollution into the air. To make this a reality, he made use of all available cash in the company, including his money to achieve this. There were zero spendings on advertisements for the company’s product. Every last penny was directed towards the success of this car. “Tesla does not advertise or make payments for endorsements. Rather, we use the money to make the product a great one”.
These ideas did not only make Musk a billionaire; it also brought him among the top ten richest men in the world. Musk had an initial mission to build a powerful electric car without omitting anything. This took almost three years before success was achieved. The Roadster was released in 2006, an electric car that travels at 0-60 mph in 3.9 seconds. This was a feat for Tesla, convincing people that the electric car was possible and could come with a beautiful design. Tesla sold only 2,400 of this Roadster. Many could not afford it as it is sold for an average price of$110,000.
On the 7th of July, 2017, Musk again proved to his critics that he would give his all to achieve his dream. Being referred to as the car of the decade, Tesla model 3, a sedan car, worked on electricity. It had four doors and could be at a 250 miles range. This time it was sold for a price of $35,000, a lot more affordable.
With 500,000 units delivered, the car remains the highest-selling car of 2018, 2019, and the best selling car in America and Europe. The self-driving technology by Tesla is what makes the stock of the company worth investing in. This self-driving service would affect many industries. This implies that they may release their Uber self-driving cars to be more affordable and at a cheaper cost. With Uber having a market share of $50, billion, and Lyft at $10 billion, these companies could be at risk if Tesla releases their own. This also means the services of truck drivers may no longer be required. If Tesla releases its self-driving trucks, it will snatch business away from the haulage industry. The delivery services, such as food and others, would also be at a loss.
When it comes to tech and innovation, Tesla leads the way, making them the company of now and future. In May 2015, Musk announced that its business would spread across new segments, known as the energy generation and storage. They base this new business segment on building good batteries, which will end up sourcing for energy and relying on other sources. They set up a Nevada company that focuses mainly on the supply of battery packs for electric vehicles and stationary storage systems.
The tech aspect of Tesla is beginning to grow more. The Tesla battery can last 100 miles between charges and last for 1 million miles. In 2019, the energy generation company made $1.5 billion, generating 6 percent of its revenue. The Tesla Semi is also among the two game-changers. Unlike other trucks that produce massive pollution, the Semi was powered up using clean energy, which remains cheaper and healthier. Also, the driverless truck could mean a lot to industries in the coming years.
The other change is the cybertruck; the demands seem to be hotter. After five days of release, the car had a pre-order of 250,000. The car is unique due to the ability to tow up to 14,000 pounds, armoured glass, and at full charge, it can travel 500 miles. These are few among the things that have taken Tesla far ahead of others. The introduction of sustainable cars and pure innovation had earned them the achievement through Musk and his team of geniuses.
Well then, with all this information, you can see how the Tesla company has risen to the top and how many opportunities they have in the years to come. What is your opinion of Tesla? Let me know in the comment section. Subscribe if you haven’t and don’t leave until you like and share this post. Thank you for your time.