Litigations Against Tesla Put Them In Dire Straits

Recent developments have had a profound effect for Tesla Motors Ltd. With Tesla being embroiled in legal battles against the state of Texas and Arizona has resulted in a disruption in the way Tesla Motors Inc. delivers its final products to its consumers. The sharp fall in  price experienced by Tesla Motors stock price from  $202.45 to $199.85 as of today has left many concerned .The largest shareholders are expressing discontent over these recent developments .Many financial analysts view this issue from another perspective .They are not worried about these developments as  the shareholders are.

In today’s world, businesses are known to compete ruthlessly amongst each other in order to merely survive. The common perception that the big corporations have it easy is incorrect as the magnitude of completion they face is beyond comprehension. Many of the companies that were listed in Fortune 500 in1960 have gone extinct by now. This substantiates the claim of even how these big corporations fight marginally in order to operate. Similarly Tesla Motors Inc too has to face obstacle s of this nature. Tesla Motors Inc. has to defy the trends of rising costs in order to produce unconventional products. Huge sums have to be allocated for R&D in order to come up with innovative ideas to produce electronic cars because they are relatively fresh products requiring new kind of production techniques. To add to that Tesla Motors Inc. brand name is still in the growing stages as compared with historic brands such as Ford.