Elon Musk wants to halve Tesla’s price

Tesla boss Elon Musk (51) often uses the company’s investor day as a stage for big product announcements. This year promised a golden future for electromobility. However, investors have not heard of any concrete implementation plans.

In particular, Musk has promised significantly cheaper electric cars. At the annual Investor Day in Austin, Texas (USA), Tesla boss presented Master Plan 3. Accordingly, it is possible to halve the costs for future vehicle generations. However, it did not present any concrete implementation plan. At the beginning of the year, Musk drastically lowered Tesla’s price by up to 10,000 francs, depending on the model.

Investor expectations faltered

The market reacted to the uncertain statements with disappointment. Tesla shares fell more than 5 percent in after-hours trading. But Tesla shares have rebounded from their 2022 decline in previous weeks and are up more than 60 percent year-to-date.

Observers had actually expected the announcement of a smaller and more affordable electric vehicle from Tesla. But they hoped in vain.

In the webcast, Musk and other Tesla executives talked at length about the global use of sustainable energy. Musk announced that Tesla will play an active role in “reviving the electric grid with renewable fuels” beyond electric mobility. The group not only offers electric vehicles, but also operates as a provider of energy storage systems for private homes, especially in the USA.

More Teslas every year

The company reported nearly 1.3 million vehicle deliveries for 2022. Musk reiterated that Tesla aims to produce around 20 million electric vehicles per year by 2030. Tesla’s CFO Zach Kirkhorn (39) estimated that the company will need to invest six times more than before to achieve this long-term goal. He said the cost could go up to $175 billion.

In anticipation of increased capacity, the question arises whether Tesla will need to expand its model range for this. The automaker has so far only offered models at the very end of the market. The Tesla Cybertruck pickup truck model was announced in 2019, but has not yet entered mass production. Tesla executives promised that Cybertruck should hit the market in more numbers this year.

Production becomes more efficient

According to Tom Zhu, who is responsible for worldwide production in the group, Tesla has produced a total of four million cars to date. “It took us 12 years to build the first million and about 18 months to build the second million. It was eleven months for the third million. It took us less than seven months to reach the fourth million,” said Zhu. He referred to the company’s improved operational efficiency.

Tesla currently has a production capacity of about two million vehicles per year. However, compared to classic automotive groups, this is relatively small. In its best year, Volkswagen produced nearly eleven million vehicles and has more than 100 factories. (SDA/kae)

Source :Blick