As with any other endeavor one goes through in life, either it will end up as a success or failure. So far, Tesla is in between. Despite having success in its earlier undertakings, the company led by the popular Elon Musk may still end up at the bottom. Yet there is a high chance, Tesla will ultimately succeed. It all depends on what happens in 2017.
Last year, analysts commended Tesla for its longer-term vision. The company was seen to have a bull case scenario of $300 to $400 per share if it succeeds with its vision. That was last year. Today, there are some who think the company can fail big time and this is because of two major reasons.
First of all, Tesla is slated to release the highly-awaited Model 3 electric luxury sedan. The four-door compact debuted last year, March 31 to be precise, and has since been promised to those who pre-ordered this year. A slight controversy arose late last year after some people voiced their concerns that the Model 3 will not be delivered as promised. Tesla released a statement to counter the rumors saying those who have already booked early on will get their cars this year while those who placed their orders starting on October would get theirs in 2018. To date, there is an estimated 373,000 pre-orders for the Tesla Model 3.
According to Business Insider, the $35,000 Tesla Model 3 will be released in the next six months. The biggest threat to Tesla is a delayed launch. If this occurs, this means the rumors and concerns from last year are actually true and that the company has been playing with its customers all along. This kind of "promotion", a lack of supply creating more demand, may work for things such as a retro Nintendo console. For a high end electric car, the stakes are too high to delay the launch because of lack of stock. There's customer dissatisfaction and a loss of revenue that may reach billions.
Furthermore, Tesla has since projected itself as a "vertically integrated energy firm" as Business Insider described the company. Musk successfully merged his company and his cousins' SolarCity late last year. Since then, Tesla unveiled solar roof tiles which are promising to say the least. If Tesla Energy succeeds in rolling out the innovative roof tiles early, the company may eventually steer clear of leasing and start moving assets like the leased solar panels.
The fate of Tesla depends on the success of the company's new ventures. If things don't go their way, Musk and his associates will be looking at a possible $50 decrease on its stock value. Tesla stocks are currently $250. On the other hand, a successful 2017 may result in the value of the stock shooting up to a staggering $500 per share.
As it stands, there is now way to tell what would become of Tesla right now. It will all depend on what transpires as 2017 rolls along.