There is current quiet a lot of news surrounding electric car manufacturer, Tesla. The company is fighting in several states to be allowed to own dealerships and sell directly to the public and has also recently won a 1,500 mile race for electric cars in impressive style.
The company has been under pressure for some time to step up production to take advantage of demand for their cars. Production targets were missed in the passed and have led to consistent operating losses.
Things have however suddenly taken a turn for the better. Good press and improvements in the vehicle have led to a surge in demand, (three times that of last year) of the $69,900 Tesla Model S sedan. To meet this demand the 2,000 workers on the Tesla production line have upped weekly output to above 400 vehicles. This upturn has lead to the company announcing its first ever operating profit and the shares in the company have seen a surge in interest and price. The share price for Tesla motors have increased by 271% this year and shares are currently trading at an all time high of $125.61.
The key to continued growth for the company is production capacity. The company has made it very clear that it intends to make a car forever part of the market stating that ‘if it moves we will make it’. The current Tesla models cover the sedan, compact SUV and sports roadster sectors with the new Model X in the Sport Utility vehicle sector. Tesla really needs to gets its 5 million-square-foot factory in California as efficient as possible if it is to continue to supply the demands of the market its vehicles.