A Review Of 2016's Tesla Motors & Why Its Name Change Is Significant

Electronic Car Maker Telsa Reports Quarterly Earnings
PALO ALTO, CA - NOVEMBER 05: Two Tesla Model S cars are displayed at a Tesla showroom on November 5, 2013 in Palo Alto, California. Tesla will report third quarter earnings today after the closing bell. Photo : Justin Sullivan/Getty Images

Although Tesla had a tough 2016 - at least in comparison to its previous years in the market - as it fell a little short of its actual targets. The company is now making changes to its system that are sure to make it a tougher year ahead. Nevertheless, the automaker does have a history of overcoming the odds, as discussed below.

As Business Insider noted, Tesla began 2016 on a high. The company's shares were priced at US$240, thanks to the release of the much-awaited Model X SUV in 2015. Furthermore, the company was closing a year on the most deliveries it had made at that point, which was just over 50,000 units. Nevertheless, there was doubt as the company was still, in essence, an auto manufacturer that was just not producing enough motor vehicles.

Later on in the year, CEO Elon Musk publicly announced that Tesla was going through "production hell." The company was apparently struggling to fix some issues with its production line, as well as issues with its Model X design. Furthermore, January saw the first concept car of Faraday Future, which posed as a threat to the company's niche audience.

Afterwhich, Tesla seemed to bounce back with the anticipation of the actual reveal of the Model 3. It was an affordable vehicle that the mass public could actually get their hands on, without much sacrifice to technology. But the problem was already evident, even at that fault: Could the company produce units in high numbers at lower costs - the complete opposite of how it was running until then?

Despite this looming question, the hype for the Model 3 kept soaring. Hundreds of thousands of individuals and families signed on to purchase their very own unit, adhering to Tesla's requirement of a US$1000 reservation fee. But it was not just the public that was on their toes, more veteran automakers were learning as well.

"We do teardowns of all major competitive vehicles," Ford CEO Mark Fields told the publication at that point. "I'm a big believer that you should never shut yourself off to learning." This was not the first time that Fields had marveled at Tesla's products, as he admitted to doing the same for the Model S as well.

With nearly 400,000 "investors," Tesla had found a way to curb the losses from its dwindling stocks. But then the company had to actually produce the units from its factories and it just was not happening as fast as it had promised. And when Musk admitted that there were stock shortages because of parts shortages.

Nevertheless, Tesla ended the year on a relative high. Despite all the odds, the company was still one of the biggest names in the industry. It was a few thousand short of its targets, but it had announced the opening of its Gigafactory, which would short circuit production and allow more units to be finished at a slower time. Battery technology was getting mastered and studies proved that it was capable of packing in more power for less space and less expenses.

But 2017 will provide to be tougher, as the company puts more onto its plate. C|Net notes that on Wednesday, the company announced a change in name from Tesla Motors to simple Tesla, Inc. The change is logical, as the company is now responsible for so much - auto manufacturing and energy.

At this point, Tesla's energy arm is still an infant and offers minimal products. The Powerwall, as discussed earlier, is a battery that holds more power at less cost than its predecessors. The Solar Roof, on the other hand, is set to replace traditional shingles with glass solar panels. The future of the company will be a bright, albeit trying, one.

© 2022 iTech Post All rights reserved. Do not reproduce without permission.

More from iTechPost