Tesla Forecasting
INTRODUCTION
In this paper, our main intention is to provide a concise financial analysis of Tesla Motors Incorporated. We will do so by calculating and providing liquidity, profitability, and solvency ratios and then evaluating those results. Tesla’s long-term goals strategy is to create affordable mass-market electric vehicle (EV). To accomplish the goal, Tesla has to increase the number and variety of EVs available to mainstream consumers in several ways:
Tesla Strategy
Tesla’s Key treats
Selling its own vehicles in showrooms (operates in stores or galleries) and online (Direct sales, avoiding regular dealers).
Selling patented electric powertrain components to other auto manufactures, so that they may get their own EVs to customers sooner;
Serving as a catalyst and reflecting a positive example to other automakers, demonstrating that is a good consumer demand for vehicles that are both eco-friendly with performance and efficiency.
Tesla has shown that electric cars can be fast, luxurious and very desirable.
Building a battery gigafactory – factory will have supply output of 500,000 vehicles by 2020.
98% of Tesla owners said they would buy a Tesla again.
Huge opportunity in the Chinese market. More Chinese entering the middle class and living in polluted urbanized areas.
Selling direct to customers, the store can’t adequately trade-ins.
Their lack of inventory means that the buyers will always have to wait for their car to arrive.
Customers are cautious buying car from “new” brand, especially cars with lifespan of battery.
The return of Fisker, a “Chinese Tesla” is about to enter the market as stronger competitor
Toyota’s Hydrogen car- a new technology of clean-burning hydrogen fuel cell.
$20 oil per barrel- this is one of the biggest threat to electric vehicles, a collapse in oil prices to #20 per barrel.
Apple to compete in electric car space – product launch anticipated for 2019.
Audi & Porsche also looking to compete in all electric luxury space.
RATIO ANALYSIS:
The calculated ratios will show Tesla’s’ ability to meet its short-term debt obligations (liquidity), performance in relation to sales, assets, and profits or losses (profitability), and the resulting income amount after tax deductions against the