Elon Musk Tweets Tesla and EV Industry’s 6 Year Goals

Elon Musk says Tesla will reach 20 million vehicles a year production probably before 2030, but that requires consistently excellent execution.

Recently, Elon Musk replied to a tweet from Ark Investment’s Cathy Wood confirming that he mostly agrees with her analyst’s research that industry electric vehicle sales will grow to 35 million in 5 to 6 years. He was less optimistic than the analyst since he mentioned 30 million (not 35) and thinks it will take 6 years, not 5 to 6.

Tesla’s stock went up about 10 fold in the last year, meaning that it wants to sell more stock, it can do so with very little dilution to existing shareholders, as it did recently.

As Elon said, they require excellent execution. Not only does Tesla need to continue to build and expand gigafactories around the world without running into any significant financial or political issues, but they also need to lower costs significantly so more people can afford Tesla’s products. They have to ensure the raw materials they need are available at affordable costs and they need to continue to expand their product line to cover more vehicles. You can’t sell 20 million vehicles if you only have the models they have announced to date. They probably won’t have the 50 or so models most global carmakers have, they might need 10 or 12 to get to that level.

The question I struggle with is since Tesla has shown the rest of the industry that electric cars are superior in almost every way to gas and diesel cars, why won’t the other automakers convert more of their sales to electric cars? The conclusion I’ve come to is that a few manufacturers like Volkswagen are aggressively working to design a whole lineup of electric cars, but many manufacturers like Fiat/Chrysler, Toyota, Honda, Mazda, Subaru, and many others are still wasting a huge amount of money on other technologies. Either trying to make their gas and diesel engines a bit better or maybe they think hydrogen fuel (fool) cells are better than battery technology or maybe they are waiting for solid-state batteries to become commercially viable. Maybe they don’t believe buyers will accept electric cars until governments mandate it, so they think they have till 2035 to convert their car lines. There are 3 problems with that strategy.

It takes 4 or 5 years to make a good electric vehicle, especially if you haven’t done it before.

You might not get it right on your first try, so it might be your second generation that is successful.

The biggest issue is that by 2025, your customers will realize they want an electric car, and if you don’t have a compelling offering, they won’t wait long for you to deliver one, they will switch to one of the companies like VW or Tesla that are making great EV’s and you may never have the chance to get your previous customer back.

Tesla has really laid down the gauntlet to the other car makers. They have made it clear that if they don’t aggressively make great EV’s as soon as possible, Tesla will be happy to take their customers. For years the other automakers didn’t worry about Tesla because there was no way they could make enough cars to hurt their massive sales. That time is past. It is clear that Tesla has the determination and financial resources to make enough sales from any automaker on the planet that is sleeping on the job and not fully engaged in ensuring their company will survive the industry’s transition to electric vehicles.

#ElonMusk
#Tesla

This is Armen Hareyan from Torque News. Please, visit us at https://www.TorqueNews.com for daily car sector news and follow us on Twitter at https://twitter.com/torquenewsauto for daily automotive sector tweets. And if you would like to support our channel, I would really appreciate buying us animated applause once a month by clicking on the applaud button, which is next to the Like button, if you are watching this video on a desktop. You can go to https://www.TorqueNews.com/tesla for our daily Tesla news coverage.

Reference
Elon Musk https://twitter.com/elonmusk/status/1310486616075579393
Paul Fosse Torque News Tesla Reporter https://www.torquenews.com/11681/elon-musk-tweets-tesla-industry-6-year-goals

Click here to get this post in PDF

Steve (15)

[email-subscribers-form id="1"]

Related Articles

Responses

MarketPlaceSocial.com 2022