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Is Tesla the future for green automobiles? In short, the answer is yes, altough Tesla almost appears to be a failed effort.
For the past three years the firm has reported a massive amount of negative net income. This is why many people make the mistake of assuming that the company will fail. Many people overlook one important thing. Tesla is selling a really great product, but the company might just be too much before of its time. It’s not that Tesla is selling a bad product; Tesla is selling a great product that doesn’t yet have the necessary American infrastructure in place to support it!
Why else would Elon Musk (of Paypal fame) stay on board as CEO? It’s simple. He knows that when Tesla breaks, Tesla will break big. It has a respectable share of Germany and the European market, they are just waiting for that North American bust.
Tesla motors has a forward thinking attitude. Elon and the rest of the fine people that run the firm know full well that they are years away from a payoff. Government loans and other sources of additional funding (including several hefty injections by Musk himself) have been keeping the firm afloat in the mean time. The company is also in the business of selling its state-of-the-art powertrain technology to major car manufacturers, which are all just, “head over heals,” for hybrid technology right now.
It will only take one strategic move on behalf of major retailers to put Tesla into full-wheel drive. Since full-blown power stations that resemble gas stations are not economically feasible when considering the entire North American continent, retailers need to add their own charging stations. Keep in mind that a full charge can make a Tesla with the larger battery pack run for up to 300 miles!
Another reason Tesla is the future of green autos and green technology is that it has the right customer service strategy already in place. It is expensive, but already in place. Consumers don’t just buy a Tesla, they buy a full-blown service package. Teslas owners say the service they get on the drive train and battery packs far surpasses the average service arrangement the big auto manufacturers offer through dealerships.
The only real argument consumers have is the price. While the roadster models are over $100k, the model S can be had for in the $60K+ range. However, although a buyer might spend only $30k+ for a really nice gas or hybrid car, the price tag doesn’t include future (expensive) gasoline purchases! Some might argue that a Model S from Tesla is actually cheaper than a gas or hybrid car because NO GAS WHATSOEVER is required to run it. Try adding up weekly gas bills over 20 years and see how much you are really paying for a gas (or even hybrid) engine.
If battery power is that close, it’s tempting to think of fuel cell power too, which has the advantage of getting the O2 right out of the ambient so it doesn’t have to be carried around. H2 can be carried around in Iron Hydrides that have ultra-high capacity and are freed with a little warmth.