Sep 6, 2019
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Tucker Torpedo
Tesla Firing on All Cylinders
US Electric Auto Manufacturer Tesla has been ramping up production in recent months. Their flagship vehicle, the Model S, and SUV, Model X, are luxury cars and can be prohibitively expensive for the average consumer. Their new Model 3, touted as an entry level luxury vehicle for the mass market, has changed the landscape. Demand for Teslas is through the roof, and the firm has been unable to keep up with the massive demand for their entry level vehicle but has been able to significantly ramp up production as bottlenecks have been solved in their supply chain and production process. Since its release in Q4 2017, the Model 3 has seen huge increases in production levels. In Q3 2018, Tesla produced twice as many Model 3s as they have produced Models S and X combined. This is nearly their production total in 2016 and more than triple 2017’s September quarter.
The overall auto industry trends offer some challenges, but also some benefits to Tesla. First and foremost, car sales are projected to go down. Cars are more reliable than ever, leading consumers to hold onto cars for longer periods of time. Consumers are often choosing used cars over new cars, or leasing their cars, which causes a glut in supply after lease terms begin to expire. Sedans in particular are hurting, as consumers are flocking to SUVs and CUVs, which dominate 64% of the market. While car sales will not decrease to catastrophic levels, it will certainly hurt auto manufacturers, especially Tesla who’s only SUV option starts at $83,000.
However, Tesla does have one major thing going for them: the shift to electric vehicles. Some criticize Tesla for being ahead of its time, and it may very well be, but CEO Elon Musk is accelerating the path to electric vehicles. In November 2017, electric vehicles accounted for just 0.4% of the US auto market, and only 5,686 of the vehicles sold that month were electric of the 1.4 million total vehicles sold. However, the electric vehicle market has seen a 17% year-over-year increase that year, and Tesla’s Model 3 is only going to inflate that number barring some catastrophic setback.
Tesla is also the leader in autonomous driving capabilities in vehicles. Most of their technology widely available is “second-level autonomous driving”, such as lane departure warning and rear parking assist, features that are becoming more widely available in consumer cars. While many consumers may not be ready to give up total control of their vehicle to a computer, these second level features can be very attractive to many, as they essentially do much of the tedious work left in driving for you, much like the invention of cruise control for highway driving or rear-view cameras for parallel parking.
https://abcnews.go.com/Business/auto-trends-watch-2018/story?id=51987894
There are many questions about Tesla in the market. Can they keep up production? Battery cells are a major bottleneck in their production, especially as they have increased exponentially from the first introduction of the Model 3 to their lineup. How low can they drop prices before it starts to dilute the value of the brand? Elon Musk wants to price Model 3 vehicles as low as $36,000, but will that dilute the status symbol effect of owning a Tesla? It seems to be working for BMW just fine. How will auto industry trends impact their sales? Tesla doesn’t have the merchandise support that brands like Harley-Davidson have to combat slowing sales, but as a smaller manufacturer with a future vision, luxury status and forward momentum, will they even be affected significantly by slowing auto sales? The Model 3 is the hot new item on the market after all.
Far Cry 5 Ep. 16: US Auto
Are American Auto Sales About To Collapse?
Are American Auto Sales About To Collapse?
The auto industry is one of the few booming sectors of the U.S. economy with vehicle sales at a 15-year high, according to The Wall Street Journal. Another publication, Car and Driver, even proclaimed 2015: “The Best Year Ever for U.S. Auto Sales.”
Analysts credited a perfect storm of low fuel prices and low interest rates for the record sales. Americans spent around $570 billion (€509.86…
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Republicans would like to stabilize the Ukraine, help their economy. Fair enough. It's the fact that they did the exact opposite in America in their attempts to destabilize our economy and hurt the US Auto Industry.
Vote out these obstructionist bastards in 2014 and 2016.