While Tesla Motors Inc (NASDAQ:TSLA)
‘s CEO Elon Musk heads into the announcement of a over-the-air software update today, that will potentially end the anxiety that the electric car’s customers have with regards to potentially getting stranded if their battery runs out of juice, there is another issue that is plaguing Tesla. It is the infrastructure of tax credits that Tesla has benefited from greatly in the past, but which is slowly going away according to Musk. These credits formed 37% of Tesla’s gross profit in the third quarter, and only 33% in the fourth.
In an interview with Joint Center for Energy Storage Research’s George Crabtree, Bloomberg
‘s Cory Johnson posed this question. Crabtree was of the opinion that the solution lay in tremendously increasing car sales, which in turn will be hard to come by given the current price levels.
“The revenue generation system is shrinking and that means that he needs to sell more cars, and my sense is that is one of the reasons for the announcement tomorrow, to make it more appealing to people to buy a Tesla Motors Inc (NASDAQ:TSLA) car, or the next generation Tesla car. We hear about what is coming in the future will cost about $30,000 instead of $70,000 and that is the real step as then it is start to approach the mass market […],” said Crabtree.
When asked if Tesla Motors Inc (NASDAQ:TSLA) would be able to pull off the $30,000 figure in the next two years, Crabtree like all other people aspiring to become customers of the $24.5 billion company was hopeful, but not entirely sure. He was careful enough not to use the world impossible given what Tesla has been able to achieve with its lithium ion batteries, in terms of range.
“I hope they do. I was the one waiting for the $50,000 car, which turned out to be a $70,000 car, and I am on the verge of buying, so if the price gets lower than this, I am there,” said Crabtree.
Tesla Motors Inc (NASDAQ:TSLA) has recently been facing selling pressure on the stock market, and is down by nearly 9% year to date. However, with the technological innovation that the company is capable of, and its growth prospects, that could change soon.
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