Tesla is an American electric vehicle located in California. The firm focuses on the making of electric vehicles and the storage of battery energy. Martin Eberhard and Marc founded the company in 2003. Its co-founders are Ian Wright, Elon Musk and Straubel. Elon Musk is the current Chief Executive Officer. He once said that the firm will aim at offering cars cheaply to the normal customer.
Tesla has several assembly plants such as the Tesla Factory in Fremont. Others are Giga Nevada, Giga New York, and Giga Shanghai in China. Its products are model S, Model 3, Model X, and Model Y vehicles. The company’s car sales upsurge over 45% in 2018 to over 365000 units last year. This year the firm produced about 1 million cars. Model 3 is the best-selling car with more than 480000 deliveries. Recently, Elon Musk commented on Jeff Bezos’s move, accusing him of copying his turf
Tesla’s New Move
The company initially reduced its prices on the Model 3. Afterward, it reduced its reservation deposits for cars in China. It is easier to own a Tesla now in China. Customers are paying only 1000 yuan as a deposit from the 20,000 yuan.
The only limitation that has come with this strategy is that the firm cannot refund the deposit. Placing a booking on a car one does not have plans to buy is going to cost him or her.
Tesla in Trouble in China
Tesla delivered its 1st Chinese made Model 3 in 2019. In March, Tesla produced over 10000 units at its Gigafactory Shanghai in China. The prices in the Chinese market are quite sensitive or tricky. Tesla has repeatedly changed its moves.
Last month, the firm reported an over 35% month-on-month upsurge in the sales of the Model 3. The demerit is that the sales increase happened after the firm decreased prices on the model car under 300000 yuan.
Is the CEO Trying To Hit The Delivery Target?
According to rumors, the model 3 is on the list for sale as cheap as below 37000 USD. Model 3 sells below 47000 USD in the United States, not including gas savings and incentives.
Gordon Johnson’s Opinion
Gordon is a GLJ analyst. The analyst believes that the Tesla company is foregoing its profits to get the delivery target.
Current Stock Performance Of Tesla
During this pandemic, the stocks of many companies have not been doing well. The prices in the market have been fluctuating now and then. These fluctuations have made a lot of investors to fear to bet on their money. This includes even Warren Buffett who sold his stocks.
On the other hand, Tesla seems to have improved its performance. The stock is up about 50% since last month. TSLA increased 5% in the after-marketing trading yesterday (Wednesday)
So, if one wants to have a Tesla during this pandemic and roam about the streets, China is the place to find a cheap car. It looks like Tesla is striving to achieve its delivery targets amid this pandemic which has slowed down several companies.