Tesla Motors Inc (TSLA): An Electric Future

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Historically, however, Audi has been known for its ability to innovate. Examples include the aluminium space frame design in the original Audi R8 as well as  Audi’s four-wheel-drive Quattro technology. With this in mind, Audi’s unexpected withdrawal from the electric car market is probably temporary. Furthermore, it is likely Audi’s next electric car offering will be a next-gen sports car with an expensive price tag while Tesla attempts to bring affordable electric cars to the masses

So while Tesla has the advantage at present, competitors will begin to close the gap as market demands shift. Tesla must be swift to capitalize on its position as it does not have the financial backing of giants like General Motors Company (NYSE:GM). Musk has proven he can transform a landscape before, with Paypal largely changing the way money is handled online. It is reasonable to deduce he may be able to repeat this success in the automotive industry, relying on innovation and disruptive technologies – the hallmarks of technological entrepreneurs – to make Tesla a stand out success.

Trump card?

The most interesting turn of events for Tesla Motors Inc (NASDAQ:TSLA) is its own announcement of the release of details for the Hyperloop transport system on July 12, 2013. The Hyperloop system works by reducing friction and propelling transport capsules in a near vacuum environment. The system’s claim to fame is two pronged: It will allow passengers to travel from San Fransisco to Los Angeles in 30 minutes.
The estimated cost ($6 billion) is roughly 1/10th of the cost of proposed plans for new rail networks such as California High Speed Rail network, estimated to cost $65.4 billion according to the CHRSA.

My Foolish line

If such a system can be developed by Tesla Motors Inc (NASDAQ:TSLA) alongside its burgeoning fuel efficient car line, Tesla will have the ability to revolutionize transport. Innovations like these will be required to make Tesla Motors Inc (NASDAQ:TSLA) the next household name.

The article Tesla Motors: An Electric Future originally appeared on Fool.com and is written by Dan Sayers.

Dan Sayers has no position in any stocks mentioned. The Motley Fool recommends General Motors Company (NYSE:GM) and Tesla Motors . The Motley Fool owns shares of Tesla Motors Inc (NASDAQ:TSLA). Dan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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