“Predicting future isn’t magic it is Artificial Intelligence”

Tesla’s vision is to “create the most compelling car company of the 21st century by driving the
world’s transition to electric vehicles,” while its mission is “to accelerate the advent of sustainable
transport by bringing compelling mass-market electric cars to market as soon as possible.

We would definitely invest in Tesla given the current status of the company. The time is now to grab
hold of the opportunity and invest in Tesla when the stock price is yet to plummet to larger heights.
We, as investors, have realised to use the first mover advantage by capitalising on this opportunity.
There are a number of reasons as to why we are so sure that the stock of Tesla will provide for
maximum returns:

ADVENT OF SPACEX

Tesla has a huge advantage over its competitors, Tesla is backed by an aerospace company, SpaceX.
Both companies being technology advanced in their respective domains have proved to overcome
problems taking the help of the other. Elon Musk calls the “cross-fertilization” of thinking between
the two companies very valuable, particularly in helping with “high-volume manufacturing of
something that has to be extremely reliable.” There is an overlap when it comes to the actual
science of that went into building materials which both companies can use to capitalise on their
strengths and weaknesses.

What makes SpaceX a _______ investment is the backing of NASA. NASA has time and again worked
with SpaceX concluding multibillion dollar worth deals among which include the deal of cargo supply
to the ISS and many others

The Space Industry, projected to become a Trillion dollar industry by 2040, shows a wide range of
future prospects with Virgin Galactic, founded by Richard Branson aiming to usher a new era of
space tourism with its spaceliners.

TESLA EVOLUTION

Tesla’s IPO since its initial launch in 2010 have plummeted to heights with the first massive jump
coming in a year after the launch of the Model S, luxury Sedan priced at 3/4 th of its predecessor the
Roadster. A similar jump but of a much more colossal magnitude is expected when the Model 3
made for a much broader cost-conscious consumers is launched. Bringing about a point of mass
adoption Tesla is about to become a household name in the near future.

Despite massive traditional automotive giants such as Ford, General Motors and BMW launching
their own electronic vehicles. Tesla still remains the big bull in the EV industry.

EVs are a no-brainer growth opportunity over the coming decades. In order to combat climate
change, most developed countries are emphasizing clean-energy initiatives. This includes clean-
energy transportation for consumers and businesses. It's going to take decades for this vehicle
replacement cycle to take shape, which provides Tesla with a long runway to grow its business

The Elon Musk Factor

The final and biggest reason that Tesla’s stock will surge is because of the man behind the
movement. Like what Steve Jobs was to Apple and Warren Buffett is to Berkshire Hathaway, Elon
Musk is more than just Tesla’s CEO — he’s its life force. A tireless worker and a relentless innovator
bridled only by the limits of his imagination, Musk has willed into reality a revolution in car travel
and space travel, the latter through his SpaceX company. Like Jeff Bezos at Amazon, he’s suffered a
string of stinging defeats. But also, like Bezos, he’s displayed incredible resilience, he’s predicted and
prepared for future trends, and he’s proven the naysayers wrong too many times to ignore. Elon
Musk is the common factor that has led to the success of both- SpaceX and Tesla!

The Problem

Tesla has poorly dealt with the production of model 3, failing to delivering at multiple quarterly
targets and barely reaching the production goals. The company has reported loss worth millions. The
problem seems to lie at over automation in the production line with loss of human ability to adapt
bringing about unprecedented changes

Proposed solution

The problems lies at the very basic operational level of production and hence remedies

Mass boost in production

The only way out of the “Production Hell” that tesla currently is by massively boosting its production
rates and meeting the targets set. This includes setting up a production chain more resistant to
unprecedented problems. Tesla’s Manufacturing Units were flawed with over automatization and
less on work personnel which lead to problems arising from out of the work environment
boundaries that A.I couldn’t deal with. A.I works effectively within the controlled environment set
already but fails to deal with repercussion arsing outside that

Further production should be continued under the supervision of on site engineers at all the four
sites situated in berlin Nevada shanghai and Germany who ensure smooth functioning in the
process of manufacture .

Stock Split

At the current moment Tesla requires a large capital to be able to start mass boost of the Model 3
catering to. A proposed solution would be a stock split. A split of 3:1 would expose the stock to a
much wider range of investors with lesser buying power, quite resonating with the vision of Model3
the cheapest ever EV model priced at $ 35,000 that aims to diversify tesla family. Investors tend to
buy 100 shares worth $10 rather than 1 share worth $1000. The stock split would help in the
upsurge of stock sales and help in liquidating the shares increasing the companys value for a limited
time
And set up the company to successfully initate is mass production and set the company to reporting
profit again.
Hey MBASocial,
I am a student of IIM Bodhgaya