Although Tesla Motors has still not earned a profit in the several years it has

Question

Although Tesla Motors has still not earned a profit in the several years it has been operating, its stock is selling at around $350 per share. This is a somewhat remarkable testament to the faith the investment community has in this company and in Elton Musk. Read this case in Chapter Three (Tesla Motors and the U.S. Automobile Industry) and then respond to the following question for discussion: If Tesla and other electric-only cars are successful in the U.S. and global markets, what other industries (beyond the auto industry) are likely to be heavily impacted by this success?

Explanation / Answer

The industries that are heavily impacted by the success of electric-only cars include -

1. Automobile idnustry - This is the most impacted industry as electrical cars have the capability to replace automobiles where the mechanical vehicles using oil or gas as fuel will be replaced with electrical vehicles consuming electricty as fuel source.

2. Oil and gas industry - As the oil and gas are replaced with electrical energy by charging the battery equipped electrical vehicles, oil and gas industry is hugely impacted.

3. Electrical and power industry - Power industry booms in the wake of more charging stations and electrical industry produces more battery and other equipment to charge the vehicles.

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