Tesla: Overwhelming demand for Model 3 sparks more investment

Tesla, the maker of all-electric cars, is the brainchild of PayPal and SpaceX founder Elon Musk, who is now the Tesla CEO and owner of 22 percent of its shares.

Tesla is named after Nicola Tesla (1865-1943), the US scientist credited with developing the Alternating Current (AC) widely in use today. The very name adds an electrifying effect to the company.

Tesla, a public quoted company headquartered in Palo Alto, California, was founded in 2003 but delivered its first car (A Tesla Roadster) only in 2008. In addition to cars, Tesla also makes home energy systems, particularly the Tesla Powerwall which can supply energy to your home.

The first Powerwall unit was recently installed in New Zealand. Tesla cars are manufactured in the United States and the Netherlands. It sources batteries for cars from Panasonic, but is understood to be in talks with Samsung as well.

Roadster

Teslas are officially sold only in about 20 countries. In Sri Lanka, where Teslas are imported by various importers unofficially. However, a Tesla can run close to 500 km on a single full charge, as opposed to the 180 km-200 km capacity of the Nissan Leaf, the world’s best selling full electric car which is also not officially imported to Sri Lanka. However, Tesla is understood to be studying the Sri Lankan market with a view to a future launch.

Tesla’s first model was the Roadster, but it has more success with the Model S, which can be seen on our roads. (Roadster production was halted in 2011 and Model S production began in 2012). Right-hand drive production began in 2014 as scheduled. Tesla S, named the Car of the Century by Car and Driver magazine last year, was the biggest selling full electric car in 2015, beating even the Nissan Leaf. A mere three years after its introduction, the Model S has surpassed 100,000 unit sales but in terms of overall lifetime sales, it still lags behind the Leaf.

The All Wheel Drive Tesla S with two electric motors is a technological marvel, which comes in several variants – P90D, 90D, 85D (discontinued) and 70D.

Autopilot

All new Model S cars are equipped with a camera mounted at the top of the windshield, forward looking radar in the lower grill and ultrasonic sonar sensors in the front and rear bumpers.

This equipment allows Model S vehicles to detect road signs, lane markings, obstacles and other vehicles. Adaptive cruise control and lane departure warning system enables semi-autonomous drive and parking abilities called Autopilot.

Autopilot allows Model S to steer within a lane, change lanes with the simple tap of a turn signal, and manage speed by using active, traffic-aware cruise control. Digital control of motors, brakes, and steering helps avoid collisions from the front and sides, and prevents the car from wandering off the road. (Source: Tesla)

The Model S 17-inch touchscreen controls most of the car’s functions. Opening the all glass panoramic roof, customising the automatic climate control, and changing the radio station all happen with a swipe or a touch. The touchscreen, digital instrument cluster, and steering wheel controls seamlessly integrate media, navigation, communications, cabin controls and vehicle data.

Tesla’s next model the Model X SUV (P90D, 90D and 75D varieties) was launched last year, with unique gullwing or falconwing doors which are very expensive to produce.

Expensive

In the next model cycle, it is thus likely to offer normal doors. The floor-mounted battery lowers the centre of gravity so that the risk of rollover is about half that of any vehicle in its class. The battery structure strengthens Model X against side impact intrusions. And without a gasoline engine, the large front trunk acts as a giant impact-absorbing crumple zone. The X has the largest glass panoramic windshield in production, providing unparalleled views (Source: Tesla)

Musk’s aim was to design a mass market car with the proceeds gained from its luxury models, which he has done with the unveiling of the Tesla Model 3 in March this year. Priced at just US$ 35,000 before taxes, the Sedan car will be offered to customers only in January 2018. (Tesla already has a few cars for demo purposes). (Source: The Verge).

Tesla earned revenue of US$ 4 billion last year, while its operating income was US$ 716 million. Tesla has 13,000 employees. Tesla’s total assets are worth around US$ 8 billion. (Tesla annual report). Tesla hopes to offer fully autonomous cars as soon as the regulatory framework and infrastructure are in place.

Next week: Unilever