Tesla Motors CEO Elon Musk reason that he bought into Tesla in 2004 after making $180 million when eBay acquired PayPal, the electronic payments service he had cofounded.
Musk bought into Tesla, eventually displacing cofounder Martin Eberhard in an unpleasant management coup.
Musk reasoned that electric car should be sexy and fast such as the original Roadster Tesla .
Tesla began selling stock to the public in 2010, at seventeen dollars per share.
A few years later, the Model S and Motor Trend magazine would name it Car of the Year in 2013.
Tesla not with standing had numerous near-death experiences prior to the IPO, including one episode in 2008 that brought the company near bankruptcy.
But once the Model S started selling, The stock went to $300 per share, giving the early investors a return of around 1,200 percent.
Tesla Model S sedan, with most advanced configuration, in the “Ludicrous” acceleration mode, could reach zero-to-sixty in 2.5 seconds,.
Leaving supercars like Ferrari and Lamborghini wondering .
Next came the Model X, a SUV, with “falcon wing” doors and new kind of air-filtration system.
All vehicles up to this point sold for near $100,000 and up, which left few new buyers or the rest of the middle class.
Musk idea adopted after Henry Ford “Let’s build one for the masses”
Hence the Model 3.
Most analysts expected something like 150,000 with its announcement.
By the time the announcement was made because all that that was needed to get in line all that was a $1,000 refundable deposit.
Walla…. 174,000 responders.
In a month, 373,000 reservations would be counted or $13 billion cash flow assuming to average price of $35,000.
So the question come to mind ? How many of those reservations will turn into sales?
A better question …will they be built on time?
Either way Tesla’s is now worth over $50 billion, topping Ford, GM, and Fiat Chrysler Automobiles
What else is in store… Musk’s grand vision.
In early December 2015, Musk gave a speech at Sorbonne in Paris, in connection with the United Nations Climate Summit, in which he called governments’ reluctance to tax the generation of atmospheric carbon the “dumbest science experiment in history” and “madness.” He went on to call for a global carbon tax, as he had done several times before.
Many have felt that car, gasoline and coal companies such as those that generate electricity contributes much of the carbon in the atmosphere—
The multi-trillion-dollar global auto industry has found itself smack at the center of what can’t be responsibly characterized anymore as a debate.
Unfortunately, there are more than a billion vehicles on the roads worldwide, and automakers continue to build millions of new cars and trucks every year.
Without exception, the world’s car companies are trying to sell their current inventory so electric car is taking a back seat at the moment.
Contrary to property belief many of the older cars of the early 1890’s were electric cars.
Some of our early manufactures found out that they could make more money using gasoline.
Now fast forward to California in 1990’s.
When the State Assemble pass a law or mandated the zero missions act.. They wanted zero-missions vehicles or ZEV for short.
It was called the California ZEV rule..and was adopted by the 1990 Low Emission Vehicle Program and regulated by the California Air Resources Board.
The California Air Resource Board has been a leader in developing programs designed to reduce emissions.
Its estimated that California cars contribute nearly 40 percent of the greenhouse gas emissions…
In order to meet California’s health air quality standards and greenhouse gas emission reduction goals….
Increase and or accelerate the numbers of plug-in hybrids and zero-emission vehicles in California.
The new act required that 2% of the vehicles produced in 1998 by large manufacturers in State of California would be ZEV’s. They increased it to 5% by 2001, and by 2003 they increased it again to 10%.
However unexpected lead times cause by a lot of griping by the manufactures lead to significant modifications by the State Assemble.
With these new Modifications, the manufactures were required to produce an increase number ZEV’s which started at what was called “technology demonstration levels” or 100’s of ZEV annually and 1000s more by 2012 to 2017 .
Volumes will triple by 2018 and by 2025 one out of seven of every car sold will be ZEV. That 15 % of every new vehicle sold in California, and that amount to 3.3 million.
So you don’t want to sell cars in California.
Well you could go any of these nine other states: Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont.
Only to find out they have adopted some or all of the provisions in the Clean Air Act that allow each states to either follow the federal requirements or adopt California’s vehicle emission regulations.
General Motor introduced the EV-1…they made about a 1000 of them.