Will the Tesla Stock Bears Eat Crow?
On Tuesday, Tesla Motors Inc (NASDAQ:TSLA) announced a new version of its flagship “Model S” sedan, which could be big news for Tesla stock.
The sedan is called the “P100D,” which the company is calling the “quickest production car in the world.” The four-door electric car can reportedly accelerate from zero miles per hour to 60 miles per hour in just 2.5 seconds, which is faster than any car currently being manufactured.
The news, unsurprisingly, had the Internet in an uproar as Tesla is—once again—changing the way we think about automobiles. When thinking of all-electric cars, efficiency and sensibility come to mind, not sleek, record-breaking sports cars.
In fact, Tesla’s P100D just zoomed ahead of some the fastest sports cars on the road. The innovative vehicle accelerates more quickly than both the Lamborghini “Aventador” and the Nissan “GT-R.” The only cars in the world to go from zero to 60 faster than the P100D are the Ferrari “LaFerrari” and the Porsche “918 Spyder”, both of which were limited-run, million-dollar cars that can no longer be purchased new.
“While those cars are small two seaters with very little luggage space, the pure electric, all-wheel drive Model S P100D has four doors, seats up to five adults plus two children and has exceptional cargo capacity,” Tesla noted in an announcement. (Source: “New Tesla Model S Now the Quickest Production Car in the World,” Tesla Motors Inc, August 23, 2016)
Tesla Motors Inc also announced that its electric crossover vehicle, the “Model X,” has a P100D version. The car, which can fit up to seven people inside, goes from zero to 60 in 2.9 seconds; the fastest SUV in the world by far.
Going the Distance with Tesla
While many of us were distracted by the P100D model’s mind-boggling speed, the car’s impressive battery life was somewhat overshadowed. The new P100D Model S can go 315 miles on a single charge; the furthest distance of any production electric vehicle out there. P100D Model X crossover also boosted its driving range, and can now drive as far as 289 miles. The longest distance that a Model X could go before Tuesday’s announcement was 257 miles, with the “Model X 90D.”
The trick to the record-breaking ranges for both vehicles is a 100 kilowatt-hour (kwh) battery, whereas the largest batteries previously available in Tesla models were 90 kwh. Until very recently, electric cars on the road had a very short range in which they could travel on a single charge, making consumers reconsider buying a chargeable car in the first place. Now, this “range anxiety,” as it’s often referred to, is far less of a concern to the average car buyer. (Source: “Tesla Unveils Electric-Car With a 315-Mile Range,” The Wall Street Journal, August 23, 2016)
What This Means for Tesla Stock
Tesla stock continues to carve out a place for itself as the most innovative—and technologically accomplished—automobile makers of the century. The Elon Musk-owned company is making stunning announcements quite frequently, building evidence that Tesla’s technology will continue to set the bar for car design worldwide.
As its production ramps up in the near term, Tesla stock is poised to grow, while consumers inevitably flock to its newly launched electric models. In the long run, as the company continues to innovate and lower its prices, Tesla’s automobiles are likely to be seen in more driveways across the globe. Tesla stock is a large-cap stock worth keeping for the long haul.