Tesla: It’s Not About the Cars
There’s no lack of media coverage when it comes to big tech names like Google, Amazon, Apple, Facebook. Technological advancements seem to be coming out of Silicon Valley on a daily basis and innovative products are changing the way the world works.
Not every company that’s making breakthroughs is actually defined as a technology company. One company making a huge impact in the field of technology today is actually classified as an automaker – Tesla. But don’t let the label fool you, Tesla is anything but a simple automotive company.
The company of tomorrow
Tesla first broke onto the scene as a maker of electric vehicles. It took the trend towards green energy and fuel-efficient vehicles a step further than other manufacturers by producing only electric cars. Many investors take one look at Tesla and wonder why the stock is so popular. The metrics are not in line with other automotive manufacturers and by some accounts, the stock looks too expensive to justify buying it. But in truth, the company isn’t just an auto-maker.
One of Tesla’s strongest products is actually its battery technology. The company has made leaps forward in battery technology to allow its fleet of electric vehicles to extend their range far beyond what they could do just a decade ago. And the speed at which electric cars generate a charge is improving as well. The company’s new commercial freight truck set to hit the market in 2019 is expected to gain 400 miles of power in under 30 minutes.
And it’s not just automobiles that the battery technology benefits. The same technology can be applied to any industry that relies on portable power storage. And as Tesla continues its research, its battery-powered cars could eventually replace the need for traditional gasoline engines altogether.
One thing Tesla’s been in the news for lately is its new automation technology. Self-driving vehicles have been discussed for years, but Tesla has managed to actually begin producing and testing fully automated vehicles for use on public roads.
While other car manufacturers are getting in on the automated vehicle scene, Tesla is one of the frontrunners along with Waymo – an offshoot of Google’s self-driving car program. Considering that Intel’s report on the market value of automated vehicles could generate as much as $800 billion annually by 2030, Tesla is a long-term play that could pay off in the end.
One of the biggest catalysts for Tesla is its innovative founder – Elon Musk. With other projects like PayPal under his belt and newer endeavors like SpaceX paving the way for the privatization of the space industry, it’s safe to say that Telsa will likely benefit as well. As a technology maven, Musk’s priority isn’t just manufacturing a product – it’s reinventing the industry from the ground up. Tesla, like his other ventures, should be invested in as a technology play and not just an auto manufacturer.