Wall Street has a reason to vouch on Tesla. Wondering what it is? Read ahead.
SpaceX or Tesla, Elon Musk works on the thumb rule of perfection and not the cost involved. He has managed to create fast going expensive things but only a few. The roadster-electric supercar was the first thing made by Tesla. Then came the two Models – S and X which underwent numerous iterations until 103,000 cars were churned out in 2017. The number is same as the cars produced by Toyota every week. He has at intervals collaborated SpaceX with Tesla, but this trial and error approach seems to be too much time-consuming.
SpaceX though proved to be revolutionary, the company defying precious norms of Space industry used re-usable boosters, metal tubes etc. reducing the cost and making space exploration more affordable. SpaceX has proved to be a success as there is no mass production of rockets. With Tesla, the situation is not the same. Electric cars or supercars whatever be the objective of Musk, to revolutionise the automobile market he needs bulk manufacturing, otherwise getting a hold of the market is a distant dream.
Musk is no ordinary person though; he had started what we know as PayPal and succeeded in the internet service. He seems to build companies in his free time, and his ambition of retiring on Mars distinguishes him from the rest of the world. That’s why, albeit of the fact that Tesla has not shown that revolutionary growth as SpaceX, investors are optimistic about the company.
The reasons for this positivity lies in the very fact considered Tesla’s weakness. When you manufacture a few cars, you do have the possibility of fixing errors. If the same model is produced on a significant level and has some technical issue, it becomes a problem worth millions of dollars. However money is not an obstacle for Tesla, but the hurry indeed is.
Musk is innovative and thinks of several ideas; few are feasible while others are not. But Wall Street has complete faith in him. Musk knows how to use resources to the optimum, investors may not be believing in Tesla but firmly believe in the capabilities of the founder and thus have no doubt while putting in the funds. The Tesla Roadster heading towards the asteroid belt has again started discussions, that if what he has depicted is converted into reality, “the car in the space” would not only bring fortune but also make investors overlook his iterations and burning of cash like rocket fuel.