Nissan has sold more than 60,000 Leafs globally since late 2010 and is likely to cross 100,000 this year. The Leaf remains by far the highest volume battery car in the world.
General Motors Company (NYSE:GM) is also growing sales of its Chevrolet Volt, but at a slower pace. In May, it sold around 1,607 Volts, which brought its year-to-date tally to 7,157, about 100 more than what it sold during the same period last year. So it is fair to estimate that its 2013 sales would be north of 23,500.
GM plans to have some form of electrification in 500,000 of its vehicles by 2017 and the Volt would be at the center stage for sure. Meanwhile, the company has announced that it will be reducing around $7,000 to $10,000 in per-unit production costs of Volts.
Increasing appeal
Tesla Motors Inc (NASDAQ:TSLA) started with a $100,000 Roadster and went down to a $60,000 Model S. Now the car maker has plans to slash prices to half that of Model S with its new-generation vehicles. In three to four years, it aims to have a sedan and thereafter a small SUV. These would be products for the masses and are expected to be priced around $35,000. This can boost sales significantly.
Tesla’s reputation has been bolstered by the fact that Consumer Reports publications bought a car anonymously in January and went through the Tesla experience without any glitches. This resulted in a score of 99 out of 100, and Model S became the first car to achieve such a rating since 2007.
And customers can now buy a Tesla Motors Inc (NASDAQ:TSLA) for as low as $580 a month thanks to the association with US Bank and Wells Fargo & Co (NYSE:WFC). The financing option has already started contributing to higher volumes.
Looking ahead
Tesla has a few aces up its sleeve that can dramatically change the fate of the company and also that of investors who decide to bet on it.
It is poised to deliver some 21,000 vehicles this year, of which 10,000 would be sold in Europe and 5,000 in Asia. These markets will broaden the company’s horizon, especially in Europe, given that Tesla Motors Inc (NASDAQ:TSLA)’s electric cars can save up to $500 per month in gasoline costs there. And then there is China, which can completely change the fate of the company if the vehicles can strike a chord with the masses.
Next, Tesla has announced that it will expand its charging stations to cover the US and Canada by next year. It had earlier planned to grow the number of charging stations from the current nine to about 100 by 2015. The new announcement indicates that work will now proceed at double the pace.
This is a very significant initiative to the extent that it will remove the feeling of restriction that buyers might have felt with its battery range before. Once the infrastructure is up, Tesla Motors Inc (NASDAQ:TSLA) vehicle owners can drive from coast to coast. The difference would be that instead of stopping for gas they would now stop for a recharge. The other key difference would be that they would not have to dish out money for the electricity would be provided for free and it would not take more than 20 to 30 minutes to recharge.
These developments, together with the greater affordability of the next generation vehicles, make Tesla’s prospects infinite.
Creating value
There have been many car start-ups over the past few decades, but profitability is what makes a company real. The market may be small, but with each passing day, consumers are accepting this eco-friendly technology. We have already seen what a single profitable quarter can do to Tesla’s stock price. It is currently hovering around $100. Just three months ago, it looked like Tesla would take forever to go past the $40 mark. This reflects investors’ enthusiasm regarding this company, which is proving to be one of the great innovators of our times.
The company’s current plans regarding tapping overseas markets, growing charging station infrastructure, and launching affordable vehicles indicate that its growth story has just begun. Tesla Motors Inc (NASDAQ:TSLA) is here to stay and will keep fighting for the electric car revolution. In fact, it will be a revolution in itself.
Eshna De has no position in any stocks mentioned. The Motley Fool recommends General Motors (NYSE:GM) and Tesla Motors (NASDAQ:TSLA) . The Motley Fool owns shares of Tesla Motors.
The article Keep an Eye on This Auto Maker originally appeared on Fool.com.
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