Tesla Charges Onward

This past Wednesday, Tesla has issued a statement claiming they want to set out an aggressive launch of their Model 3 Sedan by the end of the year. Beginning in July, Tesla hopes to amp up their production of the automobile to 5,000 units a week. The $35,000 sedan is part of Mr. Musk’s bet to transform Tesla from a luxury car maker into a sustainable energy company that sells electric vehicles to the masses, offers solar power to generate energy, and produces large batteries to store that power at home and offices. Tesla CEO Elon Musk made remarks that Tesla might need additional equity funding to compensate for the fact that there will be such a boost in supply to match the growing demand for a fully electric automobile. The reason Tesla is struggling with equity is exactly for this reason. Musk hopes two or three locations for its massive battery factories, called “gigafactories” will be built later this year. Tesla is finishing its first gigafactory in Nevada, which will have the capacity to make batteries for a million vehicles a year.
Tesla’s projections Wednesday came as it reported its fourth-quarter loss narrowed to $121.3 million, a return to red ink after posting its first quarterly profit three months ago. Revenue jumped 88% to $2.28 billion, ahead of analysts’ expectations. As Tesla sales remain constant, a new “danger” is approaching in the form of labor unrest. Tesla hourly laborers have begun a movement to start a union to protect their rights.

WSJ

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