Tesla Motors Inc. (NASDAQ:TSLA) is forging forward with its earlier plans of upgrading its production capacity to be in a position of producing up to 100,000 cars annually, up from the current 35,000. CNBC’s Melissa Lee reports that the company has already carried out a major facelift of its California plant. The facelift will allow the plant to produce up to 1,000 cars a week with the potential for more in the future.
Steve Grasso remains cautious about Tesla Motors Inc. (NASDAQ:TSLA)’s future prospects at the back of increased competition in the electric car segments. The stock continues to pick itself in the market having sunk after overvaluation sentiments by CEO, Elon Musk. The analyst believes the giant electric company is poised to face more pressure in terms of competition going forward, especially from Toyota.
“China was supposed to be their big market and if we can’t rely on China then, I think it is going to be a problem going forward. That was their catalyst that was their wind at the back. I think Tesla is now going to have competition not only from BMW, from Ford Motor Company (NYSE:F), Toyota and General Motors Company (NYSE:GM),” said Mr. Grasso.
Guy Adami remains confident about Tesla prospects arguing it stabilized pretty well at the $220 level and is now destined to surge to highs of $290 in the coming months. Tesla Motors Inc. (NASDAQ:TSLA) already has an all-wheel drive car that the current competition does not have, but Grasso believes problems associated with doors could considerably dent the car’s popularity.
Toyota has already announced that its hydrogen fuel cell-powered car; Mirai will go on sale next month and expected to rival Tesla’s electric cars. Toyota claims that Mirai has the potential to clock highs of 300 miles per each fill up compared to Tesla Motors Inc. (NASDAQ:TSLA)’s Model S 265 miles per each fill up. The entry of Mirai into the market clearly shows that Tesla could be bombarded with increased competition in the coming months as the race for next generation automobiles heats up.
The main challenge in this case will be developing a car that is fuel-efficient while also being affordable for the mass market.
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