The Real Struggle for Tesla Inc Is Focus, Not Innovation

As one of the world’s most innovative companies, Tesla Inc (NASDAQ:TSLA) has nearly single-handedly driven innovation and technological advancement in an automobile sector which has been screaming for innovation for some time.

The Real Struggle for TSLA Is Focus, Not Innovation

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Breaking through paradigms is something Tesla CEO Elon Musk appears to have been born to do. With the company’s recent announcements that it intends to take many more steps into reshaping the entire electric vehicle (EV) industry, investors are left wondering what such creations will mean for TSLA’s bottom line in the years to come.

In late November, Tesla made two announcements which took the market by surprise:

The company would be introducing an electric Semi truck with the ability to go up to 500 miles on a single charge, and be able to charge 400-miles worth of power in 30 minutes with a revamped supercharger system.
TSLA would unleash the company’s newest supercar, complete with a $200,000-dollar price tag and the title of fastest production car ever made, able to go 0-to-60 mph in 1.9 seconds.

In spending the time to assess these new technological innovations, analysts have determined that Tesla will be relying heavily upon the internal genius used to bring its current vehicles to market, as the technology to fully recharge a truck carrying an 80,000-lb load in 30 minutes is simply not even close to existing today.

Believers and atheists aside, the church of Musk is alive and well. And so far, the followers of Mr. Musk’s prophecies have certainly come out ahead, despite continued calls for caution amid sky-high valuation multiples.

Sure, TSLA is currently valued higher than Ford Motor Company (NYSE:F). And sure, Tesla only has maybe 6-8 months left of liquidity to survive. But if anyone can do it, it’s Elon Musk.

With a bucket list of action items and nice-to-haves dominating Mr. Musk’s attention span, the reality is that Model 3 production issues and balance sheet uncertainties have begun to surface in the minds of investors, many of whom have begun taking profits at current levels. Some alarm bells should be sounding here.

Maybe the situation isn’t as dire as I’m making it out to be, but I believe Tesla doesn’t have an issue with thriving; rather, it is survival that should currently be the primary concern.

In assessing what TSLA must do to survive then, I am of the belief that the vast majority of what the EV company needs to do boils down to one thing: focus.

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