The Tesla Product Innovative

By preceding our marketing plan, the expected outcome will be an increase in net sales, typically from our recent model S, as well as model X and up-coming third generation EVs; and a decrease in the cost of sales, which is the result of the infrastructure completion and reducing cost of R&D. These combine factors will result in an ultimate increase in net income.

In fact, during the year ended December 31, 2012, Tesla recognized total revenues of $413.3 million, an increase of 102% over total revenues of $204.2 million for the year ended December 31, 2011. Automotive sales revenue of $385.7 million increased 160% from the year ended December 31, 2011, driven mainly by commencement of Model S deliveries in North America. (Tesla Annual Repor, Exhibit) As a matter of fact, new products had been proved to have a direct relationship with increases in net sales. In addition, by 2014, with the innovative dual motor all-wheel drive system, Model X being introduced, and the intent to develop the third generation electric vehicle which will be produced at higher volume at a lower price. We expect a minimum 25% increase in net sales from new products alone by 2015.

On top of product innovation, Tesla would also open more sales center. As “Tesla markets and sells cars directly to consumers through an international network of company-owned stores and galleries, the stores and galleries are highly visible, premium outlets in major metropolitan markets” (Tesla Annual Report). Customers will experience a different purchasing style from traditional automobile dealership by dealing directly with Tesla’s own sales staff. On 2012, Tesla opened eighteen other locations operated with this concept in order to satisfy growing customer needs. In total, ...

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...ll profitability by 35% by 2020.

Last but not least, Tesla stock value is also a great concern for both the company and investors. The initial public offering for Tesla on 2010 was priced at $17.00 per share, however, by the end of 2012, it was increased to $35.28 per share. Recently, started from May 2013, Tesla stock price performed a huge boost, form $40 per share goes all the way up to more than $100 per share. Clearly, investors hold positive expectation towards the EV market, especially, they are confident with the EV market innovator—Tesla. Therefore, along with all the actions that Tesla is performing and going to perform, we estimate the Tesla will operate better in the future and stock price of Tesla will continue maintains an upward trend with periodically fluctuation. By the end of 2015, Tesla stock price has potential hitting more than $200 per share.