As NYU Professor Aswath Damodaran remarks on his investment blog, “Musings on Markets”, Tesla Motors is a company with the upper hand of innovation. Their future, according to Aswath, can either be as a power train and battery company, a “first-mover” in the energy vehicle industry, or as a revolution 
in the automobile industry – potentially dwarfing the business models of their primary competitors.
If you’re optimistic for the future of Tesla Motors like I am, you’re interested in speculating which of these three outcomes Tesla is most likely to end up. Personally, I believe it to fall under the “first-mover” category.
It makes most sense that Tesla continues working towards supplying the immense consumer demand for its Model S sedan. The fivefold increase in company share price over the past year is a clear indicator that consumer’s think Tesla’s ‘S’ is the electric vehicle, as opposed to hybrids or other electric alternatives. So, with that said, Tesla can, and most likely will create its own market share in a new, innovation focused, energy vehicles industry. From that point forward, it becomes a matter of gauging where Tesla’s product lines can go from there.