Tesla will beat competitors in technological and economic terms
2023.02.24 02:22
Tesla will beat competitors in technological and economic terms
By Ray Johnson
Budrigannews.com – During Tesla (NASDAQ:) Elon Musk will face a significant obstacle. ‘s March 1 Investor Day: demonstrating to investors that, despite the fact that rivals are catching up, the pioneer of the electric vehicle can take another step forward to extend its lead.
The No. 1 was Tesla Inc. A Reuters analysis of global and regional EV sales data provided by EV-volumes.com indicates that China’s BYD and others are quickly closing the gap on the number one EV manufacturer worldwide in 2022.
In fact, BYD sold more EVs than Tesla did in the Asia-Pacific region last year, while Volkswagen (ETR:) Since 2020, Group has been Europe’s leader in EVs.
VW has lost ground in Asia-Pacific and its home market as the competition heats up, while Tesla has reduced VW’s lead in Europe.
Established automakers and a group of Chinese EV manufacturers pose the greatest threats to Tesla. Lucid, a luxury electric vehicle manufacturer, saw its shares plunge 16% on Thursday following disappointing sales and financial results. Several U.S. EV startups had hoped to follow Tesla’s lead.
Competitors like General Motors Co. (NYSE:), for example, Ford Motor Company Numerous new electric vehicles, ranging from a Chevrolet priced below $30,000 to luxury sedans and SUVs priced above $100,000, will be released by Co, Mercedes-Benz, Hyundai Motor, and Volkswagen.
On Wednesday, Mercedes held a lengthy presentation in Silicon Valley about how Mercedes models of the not-too-distant future will immerse their owners in rich streams of entertainment and productivity content via “hyperscreens” that extend across the dashboard and make Tesla’s rectangular screens look outdated. Executives also emphasized that only Mercedes has a sophisticated, partially automated Level 3 driving system that has been approved for use in Germany and California.
Under increasing pressure from domestic Chinese manufacturers like BYD, Geely Automobile’s Zeekr brand, and Nio (NYSE:), Tesla has had to lower the prices of its best-selling models in China.
If Chinese battery manufacturer CATL implements its plans to offer a significant discount on the batteries used in its vehicles, the EV industry in China could experience yet another boost.
Musk has stated that he will present Tesla’s “Master Plan Part 3” at the event on March 1.
In the nearly seven years since Musk published his “Master Plan Part Deux” in July 2016, Tesla has outperformed both established automakers and EV startups in the most crucial aspects of electric vehicle design, digital features, and production.
Other automobiles lacked features like the ability to enter a parking space or make rude noises, which Tesla cars had.
Even though larger rivals lost money on their EVs, Tesla’s then-new vertically integrated battery and vehicle production machine helped achieve higher profit margins than those of most established automakers.
Today, Tesla’s “Full Self Driving Beta” automated driving is still categorized as a “Level 2” driver assistance system by the company and federal regulators, requiring a human driver to always be ready to take control. In the industry, such systems are commonplace.
Under a recall order issued earlier this month, federal regulators ordered Tesla to modify its FSD software.
Manufacturing technology, an area in which Tesla was struggling when Musk presented the final installment of his “Master Plan,” is now well ahead of its rivals.
Now, competitors are buying some of the same equipment Tesla uses and imitating the company’s production technology. The Italian company IDRA said that it is now receiving orders from other automakers. IDRA makes huge presses that make huge one-piece castings for Tesla cars.
Tesla can maintain its lead in EV manufacturing costs, Musk has assured investors. Investors have been assured by the company that they “will be able to see our most advanced production line” on March 1 in Austin, Texas.
In January, Musk stated to analysts, “Manufacturing technology will be our most important long-term strength.” Musk was coy when asked if Tesla could make money on a car that sold in the United States for $25,000 to $30,000—the holy grail of the electric vehicle industry.
He stated, “I’d probably be asking the same question.” However, we would be premature with future announcements.”
