Tesla Motors: Electric Luxury

In a capitalist empire like the USA, sustainability is often not highly prioritized. Initiatives that promote sustainability in the United States are few, and seldom do they make a considerable impact on the environment.

The Obama administration has been pushing an energy loan program that lends money to companies with sustainable business strategies and innovative ideas, such as Tesla Motors.

Tesla Motors Inc. is currently in the process of producing the “Model S”, a luxury car running solely on electricity that starts at $57,400. Concerns have been raised involving the company’s production process as orders of the new Model S are being delayed.

Peter Eavis of the New York Times writes that, “Tesla is now entering a critical phase,” as the company has taken out a loan of $465 million and the government, due to current forecasts of the company, have informed Tesla that early repayment must begin in October.

Is a company like Tesla fit to succeed in the current economic climate?

Although Tesla Motors vehicles are part of a niche market, a high end, stylish, and solely electric car company has yet to exist, giving them little competition. Should Tesla Motors market themselves correctly and push through these tough economic times, they may eventually succeed and thrive.

 

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