Crediting an aggressive strategy to slash prices of many of its popular models across the world, Tesla CEO Elon Musk has said that the company is on the clear path to sell two million electric vehicles (EVs) in 2022. Musk believes that offering discounts on Tesla models has created a new wave of demand and that this will continue through the course of the ongoing calendar year.
Tesla had predicted selling 1.8 million EVs in 2022 but fell short of the target number despite a good fourth-quarter showing. Musk is now looking at bringing Tesla back up to speed and then some more, and is confident the company will hit the target of selling two million EVs across the globe in 2023, unless there are external disruptions. In the past, factors such as Covid-19 pandemic and supply-chain disruptions had emerged as major challenges to both demand as well as production.
The biggest chunk of discounts have been offered on Tesla Model 3 and Model Y EVs, both of which are very popular in major EV markets like China and the US. Fortunes in China, in particular, could well determine how Tesla fares in 2023. Competition has been hotting up here and while Tesla remains in the lead, global as well as local rivals have upped respective games. As such, offering price cuts have been one way to ensure people continue to flock into Tesla showrooms.
But it isn’t all about selling EVs at lower prices. It is also about remaining profitable and keeping investors happy. Musk himself has predicted global recession this year to throw up challenges even if, he says, demand for Tesla EVs will remain robust. The company has attempted to reassure investors that it can afford to cut costs to beat past recession woes and blunt new challenges from rivals.
Then there is the question of existing product offerings appearing rather dated. Tesla has not had much new to offer in the real world despite showcasing new products on stage. In this regard, the much-delayed Cybertruck could dictate fortunes. The Tesla Cybertruck is expected to go on sale late 2023.
(With inputs from Reuters)
First Published Date: 26 Jan 2023, 09:55 AM IST