In a gasoline or diesel powered internal combustion engine, a piston is pushed through a cylinder by way of an explosive combustion of fuel. The piston\u2019s force turns a crankshaft that then turns the wheels via a drive shaft, which gets you to where you want to go. We don\u2019t care where the gasoline comes from, as long as the vehicle stops, starts and reverses. And we could care even less about the detrimental impacts traditional gas-powered vehicles have on the environment. The innovation of Tesla Motors (NASDAQ: TSLA) shines a bright light on the failures of other electric vehicle manufacturers. And though Tesla continues to grow at an exponential rate, what could be the dark forces that keep it from becoming the car company of the 21^{st<\/sup> century?<\/p>\n}

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Elon Musk, the CEO and Chief Product Architect of Tesla Motors, not only believes that electric cars are the future, but also that in 30 years, the majority of the cars made in the United States will be plug-in electric vehicles. \u00a0He argues that Tesla will be instrumental in forcing automakers to care about the impact they have on the environment. In addition, his commitment to creating vehicles powered by electricity and partnering and funding renewable energy sources will reduce industrialized and developing nations\u2019 dependence on oil from foreign nations and the potential volatile oil prices that come with the dependence.<\/p>\n

And he might be on to something. The Tesla Model S, the second installation in the Tesla product line, was the top selling vehicle in North America among comparably priced cars ($59,000 base). Tesla expects to deliver more than 35,000 Model S vehicles in 2014, a 55 percent increase from the year previous. In addition, Tesla plans to ramp up production and produce 1,000 cars per week, an increase from 600 cars per week.<\/p>\n

Though Tesla produces and sells fewer vehicles than Toyota, General Motors or Honda, it continues to expand its reach globally. \u00a0Tesla, most recently, expanded its operations to China, the world\u2019s biggest car market, which surpassed the United States in 2010. Tesla projects to sell at least 5,000 cars in China by the end of 2014.<\/p>\n

By creating a network of solar-powered Supercharging Stations across the United States and Europe, Tesla solves a fundamental problem many consumers have when thinking about purchasing a Tesla or any other electric vehicle \u00ad\u00ad\u2013 range anxiety. Range anxiety describes a suspicion that an electric vehicle will run out of charge before reaching its destination.<\/p>\n

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In the United States, Tesla owners can now take cross-country trips with the help of strategically placed charging stations. They can also drive up and down each coast. In Europe, Tesla owners can find six charging stations in Norway, four in Germany, two in the Netherlands and one each in Austria and Switzerland.<\/p>\n

Not only are investors developing projections based on Tesla\u2019s global growth in 2014, but many also see Tesla forcing prominent automotive manufacturers to commit or recommit to producing electric vehicles. Tesla is building at least one $5 billion \u201cGigafactory\u201d that can produce more than 500,000 vehicle battery packs per year. Once operational, the Gigafactories will double the world\u2019s output of batteries for electric automobiles.<\/p>\n

With the help of the Gigafactory, Tesla plans to build a car that sells under $30,000 and target automobile buyers at the mass-market entry level. But the Gigafactories are innovative productions themselves. Spanning more than 1,000 acres, the factories will be powered by onsite wind and solar energy plants and could cost tens of millions of dollars, according to Ben Kallo, senior equity analyst with Robert W. Baird.<\/p>\n

But many believe without the factories, Tesla won\u2019t be able to meet demand, especially if Tesla sales continue to grow in China and Europe. With plans to have at least 500,000 electric cars on the road by 2020, a delay in investing in its infrastructure would stagnate Tesla\u2019s growth. However, to finance the $5 billion project, Tesla might have a trick up its sleeve.<\/p>\n

The primary difference between Tesla and other automobile manufacturers is that Tesla wants to sell cars itself, not through dealerships. Some states continue to be hostile to allowing Tesla to disrupt the system. To force the hand of state legislators, Tesla could choose to build a Gigafactory in a state like Texas (something all states would love to have) in order to gain leverage with a conservative legislature.<\/p>\n

\u201cThe political issue around whether Tesla should have a direct sales model as opposed to selling through dealers is almost as big of an issue as the battery plant, and I don\u2019t think the two are totally separable, \u201c said Charles Hill, professor of management at the University of Washington\u2019s Foster School of Business.<\/p>\n

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The Criticisms\u00a0<\/strong><\/p>\n

The success of Tesla is both rooted in its product and customer service, but also the influx of positive messaging it has received from news media across the country. Recently, when we see other auto manufactures covered in major outlets, it\u2019s primarily due to a failure on the manufacturers part.<\/p>\n

When Tesla is discussed in a negative way, the conversation focuses on one key component: How environmentally friendly are electric vehicles if we\u2019re replacing one polluter (petroleum) with another (coal)?<\/p>\n

According to Tesla, its cars cut in half the carbon dioxide emissions of its petroleum-burning rivals, despite the fact that more than half the electricity grid is powered by coal. But to quantify the environmental impact of Tesla, you\u2019ll have to understand the composition of your state\u2019s electric grid. According to Slate, <\/i>if you drive a Tesla Model S in West Virginia — where the power mix is 96 percent coal — you\u2019ll emit about 27 pounds of carbon dioxide during a regular 40-mile driving day, which is similar to the amount of carbon dioxide you would emit in a gasoline-powered Honda Accord. However, if your charging your Tesla in California, where natural gas supplies more than half the electricity, your per-mile emissions would be a fraction of that amount.<\/p>\n

Several studies continue to cast doubt on the overall environmental benefits of electric cars. But when we look to the future of the national energy mix and the movement toward the reduction of coal and the increase of natural gas, electric cars will only get cleaner. And to argue that electric vehicles might not be as clean as we thought they were because of various nations\u2019 reliance on coal is a rather faulty argument, one that, many argue, seems driven by the automotive industry and big oil.<\/p>\n

To propel the environmental benefits, Tesla has partnered with SolarCity\u00a0(where Musk is the Chairman) to help homeowners enjoy the benefits of clean, more affordable energy without having to pay a large down payment. Instead of purchasing solar panels, SolarCity allows consumers to pay for the power they use \u2013 just like a utility bill.<\/p>\n

Why Others have Failed<\/strong><\/p>\n

Tesla is one of the most modern cars of our generation. It has the lowest drag coefficient (0.24) of any other vehicle in market allowing it to cut through wind and use less energy. A 17-inch LED display mounts on the front dash, giving drivers an opportunity to navigate using Google Maps and even browse websites. And it\u2019s a commitment to being a technology company creating innovative products, rather than a stagnate automobile manufacturer, that differentiates Tesla.<\/p>\n