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Founder Elon Musk is way ahead after Tesla electric cars do …

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Tesla Motors Electric Cars

Founder Elon Musk is way after Tesla electric do 0-$2bn in a day

Tesla Motors’ Elon Musk, at the Nasdaq for the electric-carmaker’s initial public Photograph: Brendan Mcdermid/Reuters

can turn on a dime. Barely months ago, the Silicon tycoon Elon Musk a judge presiding over an divorce from his novelist that he was out of cash and living on loans from friends. But his balance was replenished to the tune of (£16m) last week, to a spectacularly successful flotation of his cars company, Tesla

A South African-born entrepreneur, made his name by co-founding the transactions service PayPal, was bought for $1.5bn in 2002 by the firm eBay. Since he has pumped his time and money the potentially lucrative dream of a speedy, silent, zero-emission electric vehicle.

In seven years, Tesla has $290m and produced only one – the speedy, sporty Roadster. at a hefty $109,000. Its 12 showrooms the world have sold 1,063 cars. Yet satisfied include eco-savvy Hollywood such as Brad Pitt, Clooney and Matt Damon, the hipster mayor of San Francisco, Newsom .

Seduced by celebrity and Valley talent, Wall is willing to take a punt. shares rocketed 40% from a price of $17 to $23.83 on their day, valuing the company at an $2bn. Musk’s share of the should solve his personal crunch – although his wife, is pressing for $6m, a 10% stake in and a car.


Based on our life and together, is that reasonable? I so, she said on her blog. pointing out the couple had five children

Tesla’s strategy is to start a high-cost, low-volume premium which is presently assembled in Norfolk, at Lotus’s UK factory. By the firm intends to build a car, the Model S sedan, priced at $49,900, which is to go as far as 300 miles on a single plug-in

Musk is nothing if not ambitious – he to sell 20,000 of these a

When you’ve got a company in fast growth mode, got to look forward, Musk last week, standing in Square in front of two of his firm’s cars. You can’t be looking in the mirror, because if you look in the mirror, it doesn’t really sense.

Tesla has hit on a formula it believes is a winner. Powered by ion batteries, the Roadster has zero and can go from zero to 60mph in 3.7 The car is so quiet that the US National of the Blind is worried about getting run over and wants a minimum engine noise.

Experts, however, say competition be fierce. Most of the major motor manufacturers already hybrid petrol/electric cars on the and pure electric plug-ins are the step. Nissan is soon to a mass-market electric car, the Leaf. while General will unveil its Chevrolet an enhanced hybrid that can electricity on the go, in November.

The overall of Tesla isn’t really based on the production line – is one car – and the financial situation, which is hundred million dollars of since inception, says Omotoso, an analyst at JD Power.

Tesla Motors Electric Cars

Still, Omotoso gives to Musk, who recently performed a role (as himself) in the movie Man 2 . for building hype and star around the business: He’s a very good job of selling and selling the company, which is one of the the IPO was so successful. He’s tried to it as a technology company rather an auto company.

Tesla’s include an outlet in Monaco and a Knightsbridge location round the from Harrods. The firm has had a loan from the US department of and has pleased politicians in northern with plans to re-tool a car factory idled by Toyota and GM.

has taken a small stake in under a technical co-operation But even with help Japan’s biggest carmaker, are doubts whether Tesla can make the crucial jump rich boys’ toys to market runarounds.

Jacob Grose of Lux Research, a in emerging technologies, says ion batteries, produced in relative numbers, remain very – and consumers’ attitudes towards vehicles are untested: Electric require a big change in consumer People have to get used to their cars overnight and to the that they have range.

These concerns are by John O’Dell, an environmental at the cars website Edmunds.com, who Tesla’s Roadster is principally by very wealthy people who use it for cruising around rather as a practical mode of transport.

Tesla’s flotation, which was the public offering of an American for more than half a shows a willingness in the financial to fund environmentally friendly It marked a refreshing change for the industry from gloomy of Detroit bankruptcies.

And even Musk’s wife, for all the financial differences, is a fan. In online barbs at her soon-to-be-ex-husband, she that she approves very of Tesla’s role in helping society’s dependance on oil, The car itself is quite awesome.

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Tesla Motors Electric Cars
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