Tesla stock is on an ascending path lately reaching new height. The electronics car makers stock is up 383 percent so far this year. So, what is going on with Tesla?
The Palo Alto, California based carmaker’s Tesla Model S luxury electric sedan attained the highest safety rating from the National Highway Traffic Safety Administration (NHTSA) during crash tests. It is an extraordinary achievement for a young model. It is the safest car ever tested by the NHTSA so far. The Model S is equipped with pre-warning and pre-collision system that warns the driver and applies breaks by itself if the driver response is lagging. The Model S comes with an all-electronic drivetrain. The Model S is also claims that it is safe in rollovers because of its heavy battery pack that rests under the floorboard. The NHTSA tests about 85 percent of new models a year. Crash testing is an expensive science. Tesla expects to sell about 20,000 Model S vehicles this year and the price could be around $100,000 a vehicle.
Critics say the results are lopsided because other similar luxury cars from BMW, Audi, and Mercedes-Benz have not yet being tested by the NHTSA.
Recent mishaps by auto behemoths such as Toyota Motor is using low cost auto leasing to turnaround their misfortunes. The 2013 is no exception. Traditionally limited to luxury vehicles, now many auto makers are using leasing to promote new sales. The U.S. auto leasing rates are reaching higher and 2013 is getting ready set a new leasing record since 2007. Many auto manufacturers abandoned auto leasing during the recent financial crisis.
Leasing allows the auto manufacturers to promote products at a low monthly payment that customers can afford during difficult financial environment. According to published reports, leasing accounts for more than 22 percent of U.S. monthly new vehicle sales. The U.S. may hit an annualized total of 15.8 million vehicles sold this year recording an increase over the last year. Midsize autos from Toyota Motor, Fusion from Ford Motor and Accord from Honda Motor are doing really well in auto leasing. Honda is offering $159 a month lease on its Civic while Toyota Motor offers its Camry, the top selling car in the nation for $199 a month. More than 20 percent of General Motors sales came from leases in the recent past.