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05/08/2024 10:25:52 pm

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The Future of Tesla: Investors Unsure What's Next

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(Photo : Reuters) As rumors of acquisition float around, Tesla Motors' investors are unsure about the future.

Tesla Motors' stock price is currently sitting at US$188 following a drop from US$220 one month ago following results showing poor Chinese demand, reported construction delays at the Gigafactory and no solid release date for the Model X.

It does seem investors aren't sure what comes next in Tesla's plans even if CEO Elon Musk gave a good roadmap of the next few years.

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The Model X is the main announcement for 2015, a even-seater SUV for US$35,000. It will feature "falcon wing" doors and should be one of the first mainstream electric cars that offer more than four seats.

Then comes the home battery pack powering the house and car, something Musk hinted was coming later this year. In the near future, the Gigafactory will be finished and Tesla will launch the Model 3 for US$30,000.

It seems straightforward, but the lack of actual progress and low demand in some parts of the world make investors worry Tesla is about to be crushed as automotive manufacturers dive into the electric car world.

The lack of focus on profit is also a worrying factor since Musk released all of the patents for Tesla and is offering SuperChargers to all electric cars. It looks like Tesla is trying to be the babysitter for the unruly automotive industry that doesn't want to work on electric cars but will if there's an incentive.

There's also the rumored Apple acquisition that might see Tesla dissolve into the Apple brand similar to Beats Electronics. Musk is reportedly not willing to deal with Apple due to differences in patents and factories.

In Apple's view, these patents are worth something and the SuperChargers should only be available to customers that own a Tesla. Manufacturing should be outsourced to maintain high profitability, something Tim Cook is adamant about since Apple removed its own factories in the 1990s.

If this deal doesn't happen, some investors might blame Musk's focus on the advent of mainstream electric car adoption as clouding his vision for Tesla to be a profitable and successful company.

The bigger worry is that Tesla becomes a dormant brand. Unless Tesla launches the Model X in the next few months, they have nothing but poor Model S sales in China and small software announcements to bring to the table, announcements that aren't interesting to investors.

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