Studying the activities of the big players and speculating on them comes naturally to experienced traders and stock market analysts. Online trading with an experienced broker dealer for a period of time would give you the experience and insight you need into the exciting and volatile stock market.
Can Tesla Meet the Unexpected Demand for the Model 3?
Some of these speculations surround Elon Musk’s ultra successful Tesla electric car company. Unlike other electric-powered cars, Tesla’s models don’t look like they’ve come straight from the cartoon world. But now, would Tesla have to raise capital to meet the unprecedented and unexpected demand for its new Model 3? The company hasn’t spoken about it yet, but that has not stopped analysts from thinking so.
Tesla has, to date, been a niche vehicle manufacturer so when it suddenly decides to go mass market, the question arises whether it will be able to do so smoothly. Reservations for the Model 3 have already exceeded 325,000. Analysts believe this could be used by the company as the leverage for raising more capital. One of them believes the company could think of raising $3 billion for expanding capacity and meeting the demand surge. Tesla did have $2.64 billion as long-term debt. Tesla could justify the additional need for capital by citing the rising demand for getting more battery and car manufacturing units to be built. It could also take advantage of the open capital market.
Will Tesla Raise Capital to Become a Mass Market Auto Maker?
It remains to be seen whether Tesla can increase production at its Fremont, CA plant. Since the plant has brought out nearly half a million vehicles each year when it was under joint Toyota and GM ownership, Tesla should be able to ramp up Model 3 production in 2017 and 2018. Tesla could be adding another final assembly plant either in the US or overseas.
The question still remains whether Tesla can really live up to the demand. The company needs to have improved manufacturing and cash management processes in place if it is to avoid risk while ramping up the volumes. While company CEO Elon Musk targets annual sales to rise to half a million vehicles by 2020, analysts are still skeptical.
Investment and Stock Trading in India
In India online trading is gradually spreading awareness about stock trading. Investments are rising too, and start-ups are flourishing in the spirit of Tesla. This is making the difference since, in spite of two major stock exchanges - the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange), the public at large is still unaware of the potential of trading stocks.
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