Tesla master plan expands into e-trucks and buses
LONG-TERM VISION: Tesla’s latest master plan includes expanding its electric vehicle product line to cover all major segments
Oman 24 Kt per gram -------------------------- RO 16.80 Oman 22 Kt per gram -------------------------- RO 16.10 UAE 24 Kt per gram ------------------------- AED 159.75 UAE 22 Kt per gram ------------------------- AED 150.00 SAN FRANCISCO: Elon Musk unveiled his latest “master plan” for Tesla Motors Inc, delivering a long-term vision that includes an integrated solar and battery product, the addition of a pickup, freight truck and bus to its electric vehicle lineup, and plans for a ridesharing business.
Musk published his long-awaited plan on Tesla’s website partly to explain why the company’s proposed integration with SolarCity Corp will benefit consumers, who could effectively become their own utility. SolarCity, a rooftop solar panel installer, will generate electricity in tandem with Tesla’s Powerwall battery for the home. Tesla, meanwhile, will look beyond passenger vehicles to public transit and cargo shipping.
“In addition to consumer vehicles, there are two other types of electric vehicle needed: heavy-duty trucks and high passenger-density urban transport,” Musk, Tesla’s chief executive officer, wrote in the blog post on Wednesday. “Both are in the early stages of development at Tesla and should be ready for unveiling next year. We believe the Tesla Semi will deliver a substantial reduction in the cost of cargo transport, while increasing safety and making it really fun to operate.”
Musk, 45, outlined “Part Deux” of his view of Tesla’s future even as much of the master plan he set for the company nearly a decade ago remains a work in progress. As laid out in Musk’s “Secret Tesla Motors Master Plan” in August 2006, Tesla has introduced more affordable electric cars and provided zeroemission electric-power generation options. Still, Tesla has reported a single quarterly profit along the way, and buyers who paid $1,000 to pre-order the $35,000 Model 3 have been told deliveries will begin in late 2017.
Analysts are sceptical about Tesla’s ability to add even more products to its lineup given its history of product delays and cash burn. Tesla has bid $2.86 billion to buy SolarCity even as the electric-car maker has more long-term debt — $2.5 billion — than its $1.4 billion in cash and equivalents.
“As is typical, Elon Musk has laid out a grandiose plan for the future with no time frames and few specifics, and no mention of how and when Tesla will be profitable,” Michelle Krebs, an analyst for Autotrader.com Inc, said in an e-mail.
“Tesla’s latest Master Plan includes expanding its electric vehicle product line to cover all major segments, when it hasn’t been meeting production targets with the limited product line it has now and in the next couple of years.”
Tesla shares rose 0.4 per cent to $229.30 at 6:45 am in New York in trading before US exchanges opened.
Tesla aims to make 500,000 cars by 2018, though it delivered just 50,658 vehicles in 2015. The company missed its second-quarter deliveries projection by about 2,600 vehicles and said earlier this month that full-year results may be slightly below its previous forecast for US Dollar------------------------------------------------ 2.60 Euro --------------------------------------------------------2.35 British Pounds ----------------------------------------1.97 Indian Rupee ------------------------------------- 174.70 Pakistan Rupee ---------------------------------- 272.68 Philippine Peso --------------------------------- 122.53 80,000 to 90,000.
Besides the Tesla Semi truck and the bus, Musk said the company will continue to pursue self-driving technology so that customers will be able to use their cars to generate income while at work or on vacation. A car cheaper than the Model 3 is unlikely to be necessary because Tesla will ultimately operate its own fleet of vehicles, he said.
In integrating SolarCity, Tesla would be able to offer a single ordering experience, installation, service contract and phone app, Musk wrote. Tesla shares plunged more than 10 per cent when the SolarCity acquisition proposal was first announced June 21, but have since recovered. Analysts criticised the deal, pointing to Musk’s role as chairman and largest shareholder of both companies.
“We continue to see a divided investor base, with one camp bought in on the company’s vision and another focused on cash needs to fulfil that vision,” said Colin Rusch, a New York-based analyst at Oppenheimer & Co, who rates Tesla shares the equivalent of hold.
Tesla’s plans for the semi and pickup trucks, autonomous vehicles and solar and energy storage systems “will not surprise many investors,” Rusch wrote in a report on Wednesday.