Tomahawk, WI 11/29/2013 (BasicsMedia) – Tesla Motors Inc (NASDAQ:TSLA) has been making a lot of promises of late. The company’s celebrity chief executive Elon Musk recently in an interview promised that the all-electric car company will also make pickup trucks. The company is also planning the launch of its upgraded SUV Model X and then a next generation car simply referred to as Model E is also somewhere on the way.

In the category of deliveries and revenue, Musk promised investors and analysts at his company’s conference call on Nov. 5, that this quarter Tesla Motors Inc (NASDAQ:TSLA) would deliver slightly over 6,000 cars. This came after the company’s Q3 deliveries topped the whole of last year’s total delivery at 5,500 cars, but below the estimates.

As for falling below the market estimates, the company was not at pains to explain the cause. Musk said that Tesla Motors is facing production constrains due to battery shortage. The CEO promised that things were looking positive considering that the auto market is quickly falling in love with its flagship car Model S.

Getting over battery shortage problem

Tesla Motors Inc (NASDAQ:TSLA) uses a lot of lithium ion cells in the big batteries which power its cars. Currently the company has a single supplier in this category and this is costing it in terms of production.

In fact, orders keep coming but the company is not able to meet the delivery schedule. In the last quarter, Tesla Motors starved the U.S. market by about 1,000 cars which it delivered to Europe. The demand for the car is also rising in China.

In order to get over the battery shortage problem, the company is seeking contracts with more suppliers outside its primary supplier Panasonic Corporation. In fact, Musk at some point hinted that his company could consider its own cells factories to ensure that production is not derailed by cells supply.

Tesla Motors’ wars

Tesla Motors Inc (NASDAQ:TSLA) is fighting to penetrate the market dominated by gasoline carmakers who also happen to have a lot of money to fight back in efforts to retain their market. There is no doubt that Model S offer something that traditional car makers cannot match.

That is the fact that the cars do not require refueling or expensive maintenance. And this makes them an easily sell among people who don’t like the occasional pull over at the filling station to refuel while getting late for an important meeting. All-electric car also help in reduction of the greenhouse gas which is something that environmentalists love.

But the company is not having enough room to sell its cars, at least in the U.S. where dealers are erecting against its direct marketing and sells model. Tesla Motors Inc (NASDAQ:TSLA) is seeking special dealership licenses to allow it sell directly to customer because the cars require a bit of explanation to those getting them for the first time. However, this is something that traditional auto dealers are opposed to as it threatens the future of their business.

Due to this, and considering the influence of auto dealers in state and fed politics, a lot of states in the U.S. are still dragging their feet on issuing direct dealer licenses to Tesla Motors Inc (NASDAQ:TSLA).

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