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Tesla cannot sell 20 million cars without new models

by admin
March 22, 2023
in Auto News
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Tesla’s cost-cutting is paying homage to “old-school” automobile makers, Renault CEO Luca de Meo stated on his firm’s latest earnings name. “In all probability they entered right into a loop, as a result of they’ve numerous manufacturing capability,” he stated. “We did it ourselves with combustion automobiles till just a few years in the past. We killed our enterprise to push.” 

The Renault-Nissan Alliance below former CEO Carlos Ghosn might be the traditional latest instance of how growth-led enlargement can kill earnings if it’s not matched by buyer demand.

Nevertheless, at Investor Day, Musk was dismissive of any lull in demand for his firm’s automobiles. “The will to personal a Tesla is extraordinarily excessive,” he stated. “The limiting issue is with the ability to pay for it.”

Variety of Teslas delivered annually

Tesla’s intense seek for economies of scale has led to a ruthless trimming of selection. It restricts choices – besides these that may be added by way of software program updates – to hurry up manufacturing and can digitally interrogate its automobiles to see how a lot these it does provide are getting used. A gap sunroof was deleted due to this, stated Tesla.

This aversion to selection, which strongly recollects Henry Ford and his quip about providing any color as long as it’s black, extends to fashions in addition to choices. Musk stated Tesla can hit 20m with simply 10 fashions. “The quantity appears low,” stated Roeska.

The difficulty is that one or two sizes not often matches all. “It’ll be very exhausting to launch a product and attempt to promote it globally within the subsequent three to 5 years,” stated one govt at a Chinese language automobile maker competing with Tesla.

Nevertheless, Tesla is diversifying. The “next-gen” Tesla is “not only one automobile however a number of”, stated Lars Moravy, head of auto engineering, indicating that the automobile maker is making a scalable platform alongside the traces of Volkswagen’s MEB. There’s additionally the Cybertruck arriving this yr, a distinct segment automobile largely confined to the US when it comes to demand. The Roadster is one other area of interest automobile someplace within the plan.



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