Tesla shares hit by battery shortage
by khrychev
Tesla Motors’ shares raised from $35 per share in the beginning of the year to $194.5 in September, that is quite an achievement from my point of view. That mainly happen due to Model S, over 4750 units were sold in USA in first quarter of 2013, which made this model most popular luxury sedan in USA in that period of time. Same happen in Europe. Tesla Model S is an electro car, which attracts environmentally friendly costumers, furthermore, Tesla Motors just solved one of theirs biggest disadvantages, long charging, that took around 30 minutes. In June, they announced a battery swapping, which would take around 90 seconds, and will cost just as much as fuel costs.
On November 7th the Model S appears to have caught fire and that wasn’t the only accident, and since safety is the priority of each car, demand fell as well as share price. However, as Mr. Musk says, “We really are production-constrained, not demand-constrained,” demand isn’t a problem, but supply. Tesla has some problems with supplying enough Model S units to meet the demand in Europe, the company is planning to expend it’s production next year.
A rise of around 400% in share price is something that should be noticed and analysed, that doesn’t happen very often.
See the articles: http://www.economist.com/blogs/schumpeter/2013/11/tesla-motors