Tesla Motor’s Master Plan Gets a Bunch of Mixed Reactions

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Tesla Motor’s Master Plan Gets a Bunch of Mixed Reactions

The CEO of Tesla Motors, Elon Musk, finally issued the updated version of his master plan last week. The first edition of this master plan was written back in 2006. So what does this updated version includes in it?

The master plan has a lot in it; from proposals about progress of completely autonomous cars to the development of electric semi-trucks. These proposals can be shared with different owners.

However, the master plan brought forward by Tesla has gained a bunch of mixed reactions. Even the analysts of the auto industry have given completely different reactions.

Some analysts have aroused the query whether Tesla can actually achieve the goals which it has set for itself or not. Moreover, they question the fact whether Tesla will be able to deliver what they plan to offer and will it be able to bring in reliable profits for the shareholders? Even if it does…the queries have been raised just with the release of the updated version of the Master Plan.

On the other hand, a lot of analysts of the auto industry did not find the master plan progressive. They think that the rest of the auto industry is working on remarkable plans which are way ahead of what Tesla is planning for at the moment. They have been planning a lot about autonomous and electric cars lately.

The S&P Global Market thinks that the Tesla Master Plan is able to bring in effective and impressive developments for the long term but it might or it will make a cash flow sinkhole for short term.

So what did the master plan tell the auto industry analysts? It plans to develop a SUV (compact one), a semi-truck and a pickup truck along with an autonomous bus. For the development of this all, huge amounts of cash is required. Lately, we also came across a news that told us about the Solar City absorption (Musk announced it himself). This is a great pillar of the master plan itself BUT this big deal is yet to crack and no confirmation has been heard of. Moreover, this deal is nothing less than a $3 billion deal.

After announcing the updated version of the Master Plan, Tesla shares remained down all Thursday and a shocking decline of 3.4% was seen in them. They closed at s$220.50 per share (on Thursday) which was no good sign for Tesla at all.

The investor site Seeking Alpha, noted the pointed that Musk has not provided anyone with the timelines of the launch of any one of the products that it is planning to launch (which obviously acts as a big blunder in the auto industry).

There have been no launch timelines for compact SUV, semi-truck or the autonomous bus at all. Do you the master plan of Tesla have any chances of working at the best? Doesn’t it seem a little too hard for it to survive, with tons of criticism already coming down on it?

 

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