Telsa has been a consistent news and media spectacle as should be expected from such a flashy and new venture type of company. The risks they are taking may not have been perceived when they first laid out their business plan. They went for shock and wow to pull people in with their new technology especially with their line of vehicles. This may have backfired as the technology they offered is slightly ahead of our time.

AUTOPILOT’S INEVITABLITY

The auto pilot driving mode offered in Tesla vehicles is both revolutionary and frightening in the market today. It is the next step for vehicles both for personal car use and the service industry. It is frightening to look at this in both terms of  job loss and in terms of collisions. The reason the news is so infatuated with autopilot crashes is because of the human’s distrust for computers. We as a society loved the idea of self driving cars it sounds high tech and fancy yet we hesitate to trust the car completely. Even though there are over 3,200 car crash deaths per day and the average driver is most likely distracted by something in their life as soon as they enter the vehicle we will still distrust the car.  Once a first to enter market competitive advantage strategy, now the auto pilot play is back firing. Every time there is a Tesla car crash regardless of how it happen the news will blow up the story and Tesla stock will drop.

ENERGY SECTOR SAVIOR?

Tesla made an acquisition last year of a solar company called SolarCity, with the intention to go into the solar panel and solar energy storage market. Tesla no longer sold just cars and is no longer called Tesla Motors, Inc. but now Tesla, Inc. to remind people of the initiative to enter the solar power market. This push has had less media coverage yet a greater impact of the globe than any other project by Tesla so far. Tesla powers much of Puerto Rico, they have built energy systems for remote islands and built the largest battery on earth for the Australian government. Not only big contracts such as these but also personal use for the average family. Sales are increasing and Tesla, is now creating more power through solar energy than all of the power being consumed by their electric cars.

Although auto-pilot has had troubles in the past i have nothing but high hopes for the future of Tesla as a company.

https://www.cnbc.com/2018/04/02/tesla-shares-are-tanking-for-several-reasons-including-a-big-recall-and-more-questions-about-autopilot.html

Coming from business magnate and investor legend, Warren Buffet, “if we’re in the sixth inning, we have our sluggers coming to bat right now.” In terms of our current economy, Buffet has high hopes for the future, especially in the eyes of the consumer and consumer sentiment.

Consumer sentiment is defined as an economic indicator related to the consumers own perception of their financial/economic situation and the health of the nation’s economy. This is a key indicator as the consumer controls the cash flow.

WHY ARE WE IN SUCH GREAT SHAPE?

Whether the consumer is spending money or not determines the success of the economy. In the current market consumers are more likely to spend money on various goods than they would in the past years. Marketing and product placement techniques are to thank for recent spending increases mainly from social media advertisements.

Combine the increased spending and the record breaking employment rates (above); our economy is poised to grow for decades to come.  The job market is currently in favor or workers so that wage negotiations can provide higher wages and therefore more spending.

WHAT ARE WE SWINGING FOR?

With global economics becoming a greater and greater influence on our own economy, we are swinging to compete with countries such as China. China’s economy has one of the highest GDP per capita growth rates in the world. With China’s economic power growing significantly faster than us, we need to make the right choices so that we can compete for generations to come.

https://www.cnbc.com/2018/06/07/buffett-says-economy-is-feeling-strong.html

In the face of the inevitable future we scramble around searching for answers. Answers to a problem that for unfortunate reasons is not being recognized by a large portion of the new world. The problem is clear, expensive and deadly. Climate Change will be the greatest challenge humanity will face in the modern era. Not only a challenge to our scientists and engineers, but to our politicians, to our business owners, and to our investors. As a population we will all be tested, tested to see what decisions will we make. Will we come together to logically define our appropriate solution for the future or will we turn to short term profits and political leverage.

TRUMP LOSES PROFITS AND JOBS FOR?

A tariff on imported solar panels has forced U.S. companies to cancel or freeze investments of more than $2.5 billion along with thousands of jobs. These investments were once viable solutions for businesses, attempting to not only grow and prosper but to help a fight against climate change. The solar industry was poised to take off and lead the conquest for renewable energy against fossil fuels. The  potential, not only to the environment, but to jobs, profits, and infrastructure was never realized. Trump turned to the profits associated with political leverage. The tariff was intended to support domestic manufacturing jobs for the future.

WHAT NEXT?

Although the U.S. will never be able to compete will the low prices of the Chinese labor market, the tariff has supported the manufacturing sector. Over time this can significantly raise U.S. solar panel production and reduce prices. Since the tariff panel manufacturers have announced to spend over $800 million on domestic construction creating about 700 jobs. On top of the increased production of panels the tariff itself will decline by 5 percent for the lifetime of four years. There is also a 30 percent tax credit that is being utilized by key developers.

Although, the tariff was a set back that halted the progress of the solar industry there is still room for growth and profit. The tariff decreasing and costs along with it, the increased production and the growing need for renewables will save the industry.

https://www.cnbc.com/2018/06/07/billions-in-us-solar-projects-have-been-shelved-after-trump-panel-tariff.html