Cars on Mars but the problems are on Earth: the eternal bet Elon Musk
On February 6, Elon Musk, the founder of Tesla and SpaceX aerospace company, launched the Falcon Heavy rocket into space with its personal Tesla Roadster encapsulated at the tip. The brilliant Silicon Valley entrepreneur in an interview stated that the launch of the electric car in space is just the beginning; in 2022 he plans to have built a cargo spacecraft that allows to reach Mars and to lay the foundations for the colonization of the Red Planet that, according to its forecasts, could already happen in 2024.
Elon Musk has a lot of charisma and marketing sills, unfortunately though the same cannot be said of his cars.
Yesterday, a research released by Goldman Sachs expressed a very negative recommendation on the stock listed on the Nasdaq. Sales in the last quarter are down by almost 30% and analysts expect that the problems related to the Gigafactory 1 manufacturing plant are still so significant that the objective set by the guidelines for a production of 2500 vehicles Model 3 per week for the first quarter is difficult to achieve.
The bar of production of 2,500 vehicles per week has already been greatly reduced compared to the declarations at the opening of Gigafactory 1. At the inauguration there was talk of a production capacity for 2018 of five hundred thousand cars a year, but the constant problems inside the production chain, which recently led to the closure of the plant for five days, have led Musk to downsize his statements in order not to impede half a million customers waiting for cars.
In addition to the internal problems, are many competitors, particularly Volkswagen, which announced on 16 March that it wants to focus entirely on the electric car and has announced that by 2022, 16 factories of the group will be dedicated to the production of battery-powered cars. Tesla is a stock with an annual volatility of 35.8%, which has returned to trading on the market at the levels of April 2017--a monopoly at risk, production problems and with a business model that provides continuous and high investments. The car of the future becomes more and more a suitable title for a pure trading perspective or for investors with a high-risk appetite.