The company has raised $2.8 billion in capital, and is valued at over $50 billion. But the stock has fallen by nearly half since its peak.
The company just announced it will start selling cars directly to consumers, which could make it even more valuable. Tesla’s direct sales model could help the company avoid some of the issues that have plagued other automakers. Instead of relying on dealerships, Tesla would sell directly to customers. This could allow the company to offer lower prices, as well as better service.
But while the stock price is soaring, the company still faces some challenges. Chief among them: how to keep up with demand as prices rise.
“We’re going to build 500,000 cars next year,” Musk said during the call. “That’s not enough. We need to double our production rate.”
But one thing hasn’t changed: The price of a Model S electric car has increased by nearly $10,000 over the past two years.
That’s because the company has had to ramp up production to meet demand. And while the average selling price of a Model S has gone up, the cost of each vehicle has decreased.
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