Naperville Business Lawyer Discusses Electric Car Company’s Explosive Rise

Tesla, Naperville business law attorneyIt is not uncommon at all for a new company comes along that promises to change the state of the industry in which in it operates. Every few decades, however, a new company comes along that promises to change the state of the world as we know it. The best examples can be seen in technology-based industries, but there are many others. Microsoft and Apple changed the way we process information, Uber changed the way that people get around, and McDonald’s changed how we eat on the go.

A couple months ago, a relatively young company briefly surpassed one of the nation’s most enduring brands in terms of market cap, and while the numbers eventually settled to be about even, there is little question that the world is about to change again. As a business law attorney, I have watched and continue to watch with great interest as Tesla looks to make great strides toward a better tomorrow.

Modest Beginnings

Over the last quarter century, an increasing number of industries have become more environmentally conscious and started looking for ways to reduce the impact they have on the world around them. Nowhere has this been more notable than in the automotive sector where carmakers have been trying to find a reasonable substitute for the gasoline-power engines on which we have come to rely. In 2003, a group of Silicon Valley engineers came together and founded a new company which they named Tesla in honor of Nikola Tesla, the famed inventor who patented an electric induction motor more than 100 years ago.

The company’s goal was to build electric cars that lived up to the performance expectations of gas-powered cars without relying on fossil fuels. Tesla’s first car was launched in 2008 and in the years since, the company has been a leader in the global transition to sustainable energy. In 2010, Tesla went public, becoming the first American automaker to do so since 1956 when Ford Motor Company sold its first public shares.

A Bright Future

In early April of this year, Tesla’s shares saw a significant increase raising its market cap to about $51 billion, putting the electric carmaker ahead of both General Motors and Ford. Of course, Ford still sells more cars in a month than Tesla has in its history, and financial experts warned the public not to get ahead themselves. “Tesla’s stock is disconnected from fundamentals; it is driven by momentum,” said Brian Johnson, an analyst at Barclay’s.

Much of the excitement surrounding Tesla is related to its ambitious CEO Elon Musk and his other projects—which include SpaceX, a non-government space program that aims to take regular people to Mars in the near future. While Tesla may not outsell Ford or GM anytime soon, it is understandable that investors would want to be part of a company that is willing to challenge the status quo so directly and on so many fronts.

Talk to a Business Law Attorney

As Tesla illustrates, all successful businesses start with an idea and the motivation to convert that idea into a product or service. If you have an idea for a business but are unsure of where or how to begin, contact an experienced business attorney in Naperville. At The Gierach Law Firm, we have the knowledge and skills to help you make your dreams a reality. Call 630-756-1160 for a confidential consultation today.

 

Sources:

The Street

Tesla

Tech Crunch