Global electric vehicle market to reach $271.67 b by 2019
According to Reuters, Tesla Motors takes a $4,000 loss on every S
model it sells. With only $1.15 billion on hand as of June 30, down from
$2.67 billion a year ago, Tesla Motors has attracted some concern from
investors and analysts. Carmudi examines the future of Tesla Motors and
the growth of demand for electric vehicles worldwide.
Despite Tesla's operating loss of $47 million, Tesla Motors still
increased revenue by over 50% in Q1 of 2015. Even more impressive is
Tesla's stock, which is 70% higher than two years ago, and 8% ahead of
its level on January 1. Manufacturing the Model S is actually
profitable, with margins among the best in the auto industry. So why did
we see headlines claiming that Tesla Motors is losing $4,000 on each S
Model it sells?
By simply spreading their operating costs across the volume of cars
that Tesla Motors sold during the quarter, it may appear that Tesla lost
$4000 on each Model S it sold. But, the $47 million was not just spent
on building and delivering Model S vehicles. Tesla is still in start-up
mode and some of the $47 million was invested into the future of the
company.
Growth of demand for EV's worldwide and future of Tesla Motors:
The future looks bright for Tesla, and for other electric car
manufacturers. And it isn't just America that sees demand. Emerging
markets will provide a massive opportunity for the brand. A growing
middle class, coupled with the abundance of millennials, means more
sustainability-conscious motorists willing to switch from owning
gas-guzzlers to luxury electric-powered vehicles such as Tesla's Model
S.
The global electric vehicle market is projected to reach a staggering
$271.67 billion by 2019, on sales of 64.4 million units. Tesla is
certain that electric cars will shape the future of the auto industry.
The company plans $1.5 billion in capital spending this year, mainly to
launch the Model X, a battery-powered, eco-friendly sports vehicle with
batmobile-like doors.
Managing Director, Carmudi Sri Lanka, Firaz Markar said, "The
eco-friendly vehicles which are listed on Carmudi are mostly hybrid, and
almost all of these hybrid vehicle listings are based in Asia, that's
more than 90% of them."
"In Sri Lanka, we see great acceptance of the electric vehicle range.
The wave initially started with the Nissan Leaf showing great sales
growth, following importers bringing down the BMW i3 and the Tesla range
of vehicles. While the two are at a higher price range than the leaf,
the whole range of electric cars in Sri Lanka is competitively priced in
comparison to its petrol counterparts, thanks to reduced import taxes.
We expect sales of electric cars to continually grow, as long as
market conditions remain suited, with the influx of a greater range of
vehicles in the future," he said. |