In an interview with FOX Business Network (FBN)’s Liz Clarman on Thursday, CEO Elon Musk suggested to viewers that short selling Tesla Motors Inc (NASDAQ:TSLA)’s stock was “probably not a good idea.” This statement comes in the midst of speculation surrounding the firm’s current share value and what many investors believe to be a bubble waiting to burst.
Yet, most of the criticism comes from electric vehicle pessimists, who believe the company will not be able to sell its product. Contrary to their beliefs, Tesla Motors Inc (NASDAQ:TSLA)’s Model S is exceeding sales expectations. In addition, the Model X SUV will be on the market by the end of 2014 and reach volume production by 2015. More, Elon Musk revealed to FOX Business Network (FBN)’s, that the Model X is “still a premium vehicle and it’s really a third generation car that will be more of a mass market car”. The Model X SUV will have a longer range and be more affordable.
According to its CEO, Tesla Motors Inc (NASDAQ:TSLA) is currently pouring all of its income into research and development in order to develop affordable products for the mass market. By selling expensive luxury vehicles, Elon Musk, is looking to generate enough income and reputation to go onto manufacturing cars everyone can afford. Revolutionizing the industry by making gasoline and diesel a thing of the past seems to be his goal.
For now, Tesla Motors Inc (NASDAQ:TSLA) is on the right track, with no reported debt and growing sales. What seems appealing about this firm is the service offered to customers: to forget about gas prices. As a matter of fact, they don’t even have to worry about paying for a recharge, since visiting Supercharger stations is completely free.
Expanding the Supercharger station network will be Tesla Motors Inc (NASDAQ:TSLA)’s main concern in the near future. Refuelling is namely an issue for cross country travellers within the U.S., since Supercharger stations are mainly available along the East and West Coast. Hence, the firm’s sales seem to be limited largely by the lack of infrastructure. If, and when does Tesla Motors Inc (NASDAQ:TSLA) solves this issue, sales will surely experience a further sharp increase.
Disclosure: Pablo Erbar holds no position in any stocks mentioned