Musk’s News Overtakes Demand for New Cars
It was presumed that Tesla Chief Executive Officer Elon Musk would reveal an updated version of their Model Y at the 2023 Investor Day, yet stocks plunged by 5% after what was assumed to be a poor performance which made analysts ponder just when any new expansions to the automaker’s car lineup would be declared formally.
In line with Reuters reports, Tesla allegedly has a modernized Tesla Model Y in the works identified as Juniper, which is expected to launch on the market by 2024.
“The Model Y has been an unmitigated success, not just for Tesla, but for the electric vehicle industry as a whole. Its popularity has made it essential to keep the vehicle current and up-to-date,” said Ed Kim, President and Chief Analyst of AutoPacific. This latest news is in line with the teaser Tesla released when they announced the opening of their new global engineering headquarters in California.
But enough of what wasn’t revealed, since there were also several significant unveilings to concentrate on.
Previously, it had been anticipated that Elon Musk would unveil a noteworthy update during Tesla’s investor day occasion in Texas. Indeed, Tesla commonly makes big revelations during its popular investor day, and this year did not disappoint. At the event, Musk declared plans to construct a state-of-the-art gigafactory in Monterrey, located on the borders of Texas and Mexico’s Nuevo Leon.
“We will continue to expand production at all of our existing factories,” said Musk. GigaMexico will not replace these existing facilities located in California, Texas, Nevada, Germany, and China, but rather it will serve as a complement, helping to create new models. Additionally, since Mexico has a free-trade agreement with the United States, all cars assembled in Monterrey will qualify for Inflation Reduction Act tax credits.
As far as further offerings go, Musk refrained from providing any specifics but instead offered up some vague yet momentous hints. Most notably was the suggestion of a more budget-friendly offering and a shiny new platform which is expected to serve as the foundation for several other vehicles.
Despite earlier reports that production of the Cybertruck would begin in mid-2023, with more widespread fabrication set to start in late 2023, Elon Musk is holding firm to his assertion that the vehicle will be out this year. Nevertheless, he has shifted his stance on when full-scale manufacturing is due to get underway; now he admits it won’t be till 2024.
Tesla has unveiled new manufacturing processes designed to trim production costs, which will be passed on to customers. “The desire for people to own a Tesla is very high,” said Musk. “The limiting factor is affordability.” The American carmaker has demonstrated that it can quickly reduce prices when demand is high, and can also raise them when necessary. Lower costs should make the brand more appealing to a wider range of consumers.
Given that the Supercharger network of Tesla is now gradually being opened up to other vehicles, one may think that it has grown deprived of a benefit in comparison with others. Nevertheless, Tesla Electric, which essentially functions as the energy retailer for the automaker, announced recently a fresh product which will bring back that competitive advantage to them.
Rather than depending on theproducts and services conferred by usual energy vendors, Tesla Electric purchases and sells electricity in order to furnish volts through a Powerwall. In doing so, Tesla ensures their clientele gain immunity from peak prices. This system is currently accessible only in Texas, however, will be at some point implemented across the nation.
As a perk for Texas natives, Tesla is unveiling a new membership offering in July. For only $30 on a monthly basis, patrons will have unlimited access to overnight charging. Because of Tesla’s extended mileage range and the standard commute duration, consumers can now depend on an uncomplicated $30 recharge cost each month. This is an outstanding deal!
Shareholders were evidently underwhelmed, likely because of the dearth of news regarding upcoming models, something traders ardently anticipated. Tesla stocks declined around 5% with economic analysts pointing to the scarcity of specifics and financial outcomes as main contributants to the plunge.
Despite this, Tesla continues to be the highest valued car manufacturer globally, amassing an estimated worth of $635 billion currently.