’Tesla’ as an innovation & the new frontier in the market

Opinion by: Arsim.Ajeti

editor in chief/thejournalbiz.com

Tesla (NASD;AQ: TSLA) had an incredible year so far, as share surge over 350% in the midst of global crisis, as the growing sentiment of investors and consumers drive towards the shift of auto industry going all-electric, focusing on tackling global warming & pollution.

Tesla’s revenue grew up to 24.6 billion U.S. dollars in the fiscal year of 2019, according to Statista. Although U.S remains Tesla’s largest market, while Chinese market has experienced growth, as a result of Shanghai production factory built by Tesla in order to meet consumers’ wants and needs.

Tesla’s project plan is fairly simplistic, creating a new model of disruption, in which ‘niche’ units usually start at the high end and move downwards. merging automation drive into efficiency, and reliability as core fundamentals of innovation

At the end of 2019, Tesla’s global sales exceeded 380,000 units

in total, Tesla produced over 1 million units, as E.V trend continued to rise exponentially,

Tesla’s X factor, Elon Musk!

Despite global pandemic and financial difficulties, Musk earned a staggering 8 Billion $ during 2020 alone, now ranked #7 out of 400 richest people living in US according to Forbes. Moreover, Musk was recently engaged on a side futuristic project, a rather bizarre undertaking of making AI-enabled devices capable of interacting with people’s brains making a human cyborg come to life, just as we’ve seen them in the sci-fi movies!

‘Neuralink” …as anticipated, is an AI project that could potentially ‘cure neural conditions & disorders’…this line was the highlighted statement that was broadcasted live during the presentation of the pig with an already activated chip inside the skull!

Alongside the successful Space X Corp, Tesla’s Ceo is rightly considered the X factor behind drive & innovation transmitting value & confidence amongst consumers worldwide!

Ever since the creation of Tesla in 2010, Musk was outspoken about his goals on creating an affordable mass-market electric vehicle, that will surpass gasoline-powered cars…whilst periodic lapses on tweeter and controversies of smoking pot live on a podcast hosted by Joe Rogan, only fueled the fire about his enigmatic personality, half celebrity half genius with a mission to transform not only the auto market but also Space exploration!

Decline of the diesel dynasty!

In retrospect, the global auto industry has thrived after the WW 2, if we look at the stats, it is clearly indicated as the fastest-growing profitable trends, as fast-paced economical recovery reflected on the booming auto-industry as the growth maintained a balance on economic stability and social prosperity.

According to Scientific researcher report, the social and economic changes brought by auto industry dominated by European, Japanese & US companies enjoyed unprecedented growth. Following the sustainable growth en mass production enabled the middle-class citizen’s car ownership via feasible bank loans, which quickly became the trend.

As the market demand increased constantly, so did engine models, offroad, hatchbacks & limousines all-powered diesel engines that become a global attraction generating a massive profit and R & D respectively

Battery, the ‘Achilles heels’!

Day of reckoning…for Tesla, as long-life battery means endurance and reliability of the electric car, whilst all the attention this year was focused into Cybertruck announcement, leaving the battery project floating under the radar, only weeks ago with the news buzzing amongst the fintech world that the battery update is to be announced soon, on 22 September, as Tesla agreed to produced battery cells in their newly opened ‘ Giga factory’ Berlin, Germany as a clear signal of long-term growth, along with additional Cybertruck’s production in Austin, Texas, amid rising pre-orders worldwide…

Tesla is becoming a success story of transition, subject to producing a stable long-lasting battery as pure lithium has remained the ‘Holy Grail’ in EV Market.

Rising Competition in China

Tapping into the largest EV market, is a double-edged sword for Tesla, as China is the world’s largest market for electric vehicles and Tesla’s second-largest market after the U.S.

Tesla has sold over 70,000 Model 3 in China in 2020, making it the most popular EV in the country, furthermore, Tesla expansion by building a plant in Shanghai primarily covering three market fundamentals;

Ease of access towards the Asian markets,

Lower shipping costs and making sourcing components more cost-effective,

Avoiding China’s import duties on U.S.-made cars, in the midst of tit for tat trade tensions between US & China administration,

The Chinese government has vigorously supported local EV industry, handing out over $60 billion in subsidies to over 200 companies.

Most prominent and promising potential from China’s market tends to be BIAC, and NIO with their project expansion and variety of EV models, primarily focused on the local market but with an eye on expansion, as Nio looks promising with financial stability and support, not only Government wise, but also from local tech giants as; Tencent, Baidu & Lenovo…

Nio and Baic projected the market entry in Asia & Europe by mid-next year, plans halted due to Pandemic disruption

Tesla, no doubt will face stiff competition from state-owned enterprises in Asia, but as consumer demand is on the rise for Tesla models globally, it is hard to predict the future outcome on the efficiency and quality assurance from the Nio and BAIC respectfully, as the rise of China’s GDP & economical exponential growth will make the lowest price, not as appealing to the loyal consumer of Tesla, as the price promotion will be their entry point, alongside powerful engine and appealing designs!

currently, local rivals hardly are considered a threat towards the company, who is valued more than Ford, & GM combined!

Thus, the paradigm shift happening in the auto industry are a clear sign of global reflection, deriving from the market growth and necessity of tackling global pollution, as the scientific community continues to call for the reduction of global pollution, that was on alarming stage for years, even though we have a Paris Treaty agreement where most developed economies agreed to tackle the issue progressively..

We, the civilization of planet earth were oddly reminded of benefits of the clean air and cleaner, prosperous nature as we are in midst of pandemic crisis!