Anyone who doesn’t know Elon Musk must not own the internet. The famous automotive and energy company, Tesla Inc. has gained so much popularity over the years. With Elon Musk being the face of the company, he was definitely going to be widely known all over the world. Yes! Not just in the United States.
Tesla’s profits in the third quarter were off the roof. It boosted the company’s shares, which beat a lot of people’s expectations. The CEO, Musk, used the opportunity to preview the ride-share services offered by the company. The Tesla Network might just be available for passengers.
Although Musk has had a rough time in the past, things are definitely proving to be better for him. On October 24th, the company broadcasted that its quarterly profits had by far shattered Walt Street projections. The company’s investors had a pretty good time with the shares rising more than 12%.
After the earnings reports, Musk is now turning to the raid-hailing industry and proclaimed that Tesla will be the new competition against Lyft and Uber.
The Future of Ride-Hailing Industry
The upcoming ride-share is to be named Tesla Network. Business Insider informed that, according to Musk, it is expected to be operational by the end of 2019.
The resolution coincided with Tesla’s autonomous vehicle system development. Thus, Musk will have two projects in his hands.
The idea of the Tesla network is that customers of the service are capable of providing their vehicles to other drivers and also displace them at their own free will. This system is just like the one where homeowners can rent their home to seeking individuals on Airbnb.
Tesla will be providing automobiles from its own fleet in cases where customer vehicles are lesser than the demand. Although, the company still has improvements to make in their driving system.
Tesla’s manifestation of a self-driving car at present is basically hyped travel control. Despite the fact that it can handle various driving tasks, the drivers are mandated to not take their hands off the wheel.
The plan to integrate self-driving cars into the Tesla Networks has been pondered severally in the company since 2016. Musk even wrote, “Master Plan, Part Deux” in 2016 where he publicized their intentions with the self-driving automobiles.
He revealed that when the system is sanctioned by regulators, customers can call on their Tesla wherever they are. He added that the customers could sleep or even read, as the automobile drives them to their destination.
The development of the raid-hailing business is feeling more like a natural advancement for the Tesla CEO. It is also an excellent strategy for new investments and income opportunities.
Thus, this new business venture is anticipated to bring in about $276 billion for the company by the year 2025. The projection was provided by a Research and Markets report of 2017.
Considering the CEO’s unpredictable nature for the last few years combined with his greater than before ownership of the company; it is so hard to tell what his actual; plans will mean for Tesla’s shareholders.