Tesla, the luxury electric car manufacturer known for its sleek design and innovative technology, has reached an impressive milestone. The company is now valued at $1 trillion after Hertz increased orders by 100,000 cars to be manufactured over the next decade. The move is surprising when you consider that Tesla has yet to turn a profit in its 13-year history, but the fact remains that they are currently leading in electric car technology.
Hertz, the largest car rental company in America, is basing its decision on Tesla’s new product line of electric semi-trucks. But with this announcement comes controversy. One of Hertz’s main competitors has voiced its concern over the partnership, saying that it will do little to impact emissions despite claims by Tesla to the contrary. “We’re not sure how committing $11 billion in capital to one company would be better for the environment when you factor in all of the energy used in manufacturing and charging batteries,” said Alamo founder Jack Crawford. He goes on to point out that their position is made more ludicrous given that they are purchasing gas-burning cars from companies like General Motors to keep up with customer demand.
It’s not all bad news for Tesla, however. The company is still planning to release its first consumer electric car since the Model 3 last year. The new model will have a starting price of just $35,000, which is comparable to the average cost of an American vehicle. Musk himself has said that he thinks it can beat out other brands in terms of both style and performance. The only downside is that there are already pre-orders being taken for the next six months so if you want one soon, you’ll have to act fast!
There are also rumors circulating about two additional vehicles that could be released by 2020. The first would be an SUV based on their existing models while the second would be a pickup truck for those who work in the construction or farming industries.
“We’re not going to do anything bad for the environment,” Musk told investors last month. “We will always make sure that we tell the truth about our cars and their value. Our priority is to make sure that everyone knows what this company stands for and, more importantly, all the cool things we’re doing.”
This is all well and good, but the fact remains that Tesla has a lot of work to do before it can rival its competitors. “Who would’ve thought 13 years ago that electric vehicles could be sold on the same shelves as gas-powered cars?” said Musk.
“I know there’s been a lot of debate about whether or not we’re profitable…”
In addition to its new R&D center being built in Northern California, Tesla has announced plans for a second facility situated in Europe. The new factory will focus on making car batteries and engine components so they don’t have to ship them from across the pond. It is expected to cost around $2 billion and will likely come online sometime between 2020 and 2022. This, of course, is still speculative since it’s unclear if the company will even turn a profit this year. But Musk thinks they’ll be doing just fine after 2020.