Tesla Seems To Be Ahead Of Rivals In the EV Business
The auto making giant is soon going to be quite ahead in the EV industry than it already is from its rivals once the lithium ion batteries are finally rolled out in the market
The recent Tesla news talks about how the firm has been living majorly on the battery making idea that is currently being worked upon through the whole Gigafactory project in Nevada and how the growth of the auto making firm depends on it.
Since the firm is making batteries at the Gigafactory which will eventually be used in the electric cars being made by the company as well, analysts are discussing how important the whole venture actually is for the EV producers, given how they have speculated that by 2020 there will be around 500,000 cars on the roads which will be fueled by an electric engine. To make this dream of the firm come true, the production of batteries is as important as it gets.
According to recent Tesla updates, it was seen that Tesla cars signed up a deal with an energy company called Pure Energy in order to speed up things in a better way to make the lithium batteries for the long run success of the EV industry. Lithium mine will be created supported by the partnership between both the firms which will not be far away from the actual Gigafactory and also which will also end up turning out the whole production in a much better way.
Elon Musk, the CEO of the firm, was recently in the limelight for signing a new deal with two other companies for the same purpose, but the mine field following that collaboration is to be situated in Mexico. Looking at the overall perspectives of the project, analysts have come to the conclusion that it is possible that the firm turns out to do well in the stock market in the next trading sessions. The outlook of analysts has come out to be quite bullish as well which has made sure that the firm might be going up on the stock market very soon.
All the positivity that seems to be coming out from the equity analysts is some way or the other related to the success of the battery making project that is currently under process. The expectations of analysts also show that it is quite possible that in five years, Tesla ends up receiving 50 percent or more share of the battery market which will also give it a wider chance to earn more money than before. This is one of the reasons why the price target set by analysts at Jefferies has been raised to $365 with a rating of a ‘buy’ on the shares.