Tesla is the Leader of Major Changes in the Automotive Industry

Tesla was in a state of operating loss until a few years ago, but with the mass production of the main small car “Model 3” on track, it achieved stable operation. After the third quarter of 2019 (July to September), three consecutive quarters of profitability will be achieved. Investors’ evaluations are getting higher and higher. During the trading time on July 1, the stock price once reached US$1135 and 33 cents, refreshing the highest value since listing.

Following the California plant in the United States, Tesla opened its plant in Shanghai, China in 2019. The delivery of the “Model Y” SUV began in March, forming a comprehensive car manufacturer system with a wide range of models.

Even so, Tesla’s sales target for fiscal year 2020 (as of December 2020) is about 500,000 vehicles, less than 5% of Toyota’s fiscal year 2019 (as of March 2020) sales of 10.45 million vehicles. The reason why Tesla is highly praised in the stock market, in addition to performance improvement, lies in its advantages in the major changes in the automotive industry.

Existing automakers are being forced to adapt to trends such as electrification, autonomous driving, and sharing. Especially in the context of increasingly strict environmental regulations in various countries, the transformation from the most profitable engine car to Tesla’s main electric vehicle has become an urgent problem to be solved.

Tesla was in a state of operating loss until a few years ago, but with the mass production of the main small car “Model 3” on track, it achieved stable operation. After the third quarter of 2019 (July to September), three consecutive quarters of profitability will be achieved. Investors’ evaluations are getting higher and higher. During the trading time on July 1, the stock price once reached US$1135 and 33 cents, refreshing the highest value since listing.

According to estimates by McKinsey & Company of the United States, the current production cost of electric vehicles is 12,000 US dollars higher than that of engine vehicles. Even though the profitability can be improved by reducing the cost of parts and components, it is estimated that it will not be reduced to the same cost as the engine car by 2025.

Editor’s note: This article is for reference only and does not constitute an offer, solicitation or invitation, inducement, any representation regardless of type or form, or make any suggestions and recommendations. Readers should use their independent thinking ability to make their own investment decisions If any losses are incurred due to the relevant recommendations, it has nothing to do with istanbulpost.com.tr , the editor and the author.

Reviewer overview

Tesla is the Leader of Major Changes in the Automotive Industry - /10

Summary

0 Bad!