Will we see a day when Tesla becomes larger in scale than General Motors? CEO, Elon Musk, thinks so. He made the comments during the Baron Funds Investor Conference. When he was popped the question, optimism ran strong.
“Possibly, it’s not out of the question,” Musk told Tech Insider. Now, to be fair, it certainly is possible. But is it likely? That remains to be seen, especially if words from Bob Lutz are taken to heart.
General Motors builds nearly nine million vehicles in one year. To date, Tesla has built 100,000 vehicles since its inception. To combat this, Tesla has been busy investing in its Nevada-based GigaFactory, which aims to produce more lithium-ion batteries in 2020 than were produced worldwide in 2013. So far, investment at the facility totals $5 billion.
The site is essential if Tesla is to keep its promise on introducing a mass-market electric vehicle to take on the likes of the 2017 Chevrolet Bolt EV. Musk says he envisions production to be around 500,000 cars by the end of this decade.
“We could conceivably go beyond half a million cars there… long-term, I think we want to try to do several million cars,” he said.
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At it’s current growth rate, it could. But that growth rate is non sustainable. The family buying an Equinox is not going to be able to afford a Model X.
Some more BS to help boost the Tesla stock. Hell, GM makes more cars in one day than Tesla makes in one year. Tesla loses 4000 dollars on each car and if they are still in business in two years, I’ll be surprised.
http://www.businessinsider.com/a-legendary-car-exec-thinks-tesla-is-facing-the-trifecta-of-doom-2015-10
California will keep giving them free money, I mean green credits, for many years to come.
Wouldn’t the company have to start turning a profit for once?
Not really. Amazon just made its first profit last quarter. A high growth company can issue more shares to continue financing itself.
Amazon makes big profits selling their custom software to other business
Hard to say – lack of profitabilit didn’t hold GM back during the 70s/80s/90s/00s.
Maybe we’ll know Tesla’s made it when they need billions of taxpayer dollars to stay in business.
Lack of profitability in the 70’s 80’s? Despite multiple recessions they stayed profitable even into much of the 90’s
And the 5 billion they’ve already taken doesn’t count because?
“Could”
I’m not saying that to be dismissive as Tesla is the biggest shakeup in the world of cars in decades. But the gulf between Tesla and GM’s isn’t something that will be crossed in my lifespan.
If I’m wrong, I’ll print out these words and eat them through my feeding tube.
One would hope Elon Musk would be better at Math.
Someone please explain why he wants to make mainstream cars? Anyone who has looked at the financials knows luxury cars in their limited quantities turn higher profits than the mainstream brands do. Audi and vws profits are very similar for example.
With enough trust pigs can fly too.
This is just more of his PT Barnum like press releases that stir excitement among the followers. Elon is very charismatic and I believe if he was at Jonestown he could have gotten them to drink the poison too.
Note this follows Morgan Stanley recommending that Tesla get out of the car business and just focus on solar and batteries. They stand a greater chance on battery supplies as an independent company selling them vs. expecting automaker to buy them from a competitor.
The real issue is they need to start showing profits from products not selling carbon credits. I see he is moving the 3 when ever it get built to China to be made. This shows he is having trouble controlling cost to build it here as it will make a sore selling point even if it saves on price.
Elon has had it easy in a tough segment with selling a high priced car. But volume is still where he needs to succeed and that is going to be tough.
This is a slow growth segment and while GM and others can get by with low volumes and build their segments slow living off sales of ICE cars he has no fall back. Also it will take more than just EV to survive as Hydrogen, Diesel and ICE will still play a strong role into the future. Batteries are still not as good as they need to be and until you can go 200-300 miles and get a full charge in the same amount of time as it takes to fill a tank of gas it will remain a secondary slot just not for everyone.
Well ive seen the Tesla and it is impressive. A freind of mine bought one. Ifthey made a more mainstream I would look at it really hard.
Isnt gm trying to not let tesla be the new gm of the future. That is to say gm now builds mostly gasoline but see’s tesla as a step ahead in foresight and desire to be there in the future.
At the present growth rate, his grandchildren will be in charge when TM beats GM. Or he can do what GM did in the beginning of the 20th century: buy other car companies. Chrysler is up for sale, Musk!