- Tesla had 2nd consecutive profitable quarter after spending years as a loss-making company.
- The cash revenues of the company have gone up to more than $6.2 billion.
- Tesla’s Model 3 was a showstopper car (despite slowing growth in the US).
- Nearly half of 300000 Tesla’s Model 3 deliveries last year were to Europe & China.
After being a loss company for several rounds of years, Tesla has started to be profitable, started cutting costs, is growing in revenue and restraining its chief executive Elon Musk from threatening the company’s solvency.
For Tesla 2019 was a turning point and this year the company is on a journey to produce cheaper EV carmakers. The company is entering its mass production phase. The importance of Model X and Model S is fading as it retools itself to become a global automaker.
Tesla is now capable of delivering 500,000 vehicles this year and the same number is said to reach 1 million by 2022 (according to an investor note). He also added that the company is trying best to produce a cheaper EV (though not the cheapest).
Cheapest EV tag still belongs to Chevy Bolt, Nissan Leaf, Hyundai Ioniq and others selling at a price of approx. $35000. Looking at the current growth and vision of Tesla to be a cheaper EV carmaker, the company might also disrupt the cheapest EV market in the coming time.
“Tesla got a bit lucky in that the market evolved around them: unplanned, the Model Y might slide right in the sweet spot for the EV crossover market, it has a more prestigious brand than the mainstream hybrid nameplates but comes at a significantly less cost than the rest of the luxury competition.” – Jessica Caldwell, executive director of insights at Edmunds – an automobile research company.
Tesla’s luxury rivals are still expensive, while entry-level competitors aren’t that attractive enough. The price of the Audi eTron starts at $75,524 while Jaguar’s space comes at a whopping cost of $77,109.
Standard EVs like Chevy Bolt comes at $38,000. Even the cheapest EV offering – Nissan Leas, lists for $32,000.
Tesla’s Model 3 now comes at a cost of $35000 (om special ordering) and Model Y is expected to start at $48000 with a standard variant coming out later for $39000. After the company went profitable, it’s now planning to be a cheaper EV carmaker in the market.
It might take some time for the company to be the cheapest, hence the company starts with being a cheaper EV carmaker and hopefully we see Tesla in the race of being the cheapest EV carmaker.
The company has already proved it can take over a premium sedan car segment taking down prominent players like Mercedes, Lexus and BMW’s 6 & 7 series with its Model S starting around $75000.
As the carmaker goes profitable, Tesla is clear with its vison – To becomes a cheaper EV carmaker. However, the tag “cheaper” can be somewhat debatable.
A few years ago when Ratan Tata commented in a statement that Tata Nano is the cheapest car, people took it abruptly wrong and it was boycotted countrywide and Tata had to apologize on their statement.
Tesla’s statement seems well-constructed when the company’s people say they are on a journey to be a cheaper EV carmaker.
All that’s left to see, if India will be boycotting the company or not. Because cheaper word still sounds like compromising with quality (as it was thought during Tata’s time)
All in all, on one side, it’s good news that Tesla will be offering cheaper EV but at the same time it (may or may not be) debatable.
We wish Tesla all the best on their journey to become a cheaper EV also, we hope they don’t fall into the trap of any controversy due to their statement.