let's continue with our business
coverage and we're looking at Tesla now
it's chief executive Elon Musk has
signaled he could cut the price of his
cars further as the market faces what he
calls turbulent times sending the
company's shares down sharply Tesla's
already cut the price of its Long Range
model y by a quarter this year amid
stiff competition with other car makers
the price war is taking its toll on
Tesla's profits margins which were down
in the three months to June to their
lowest in four years but it did sell a
record number of cars and says it's on
track for its Target of shipping 1.8
million Vehicles this year if you look
at the share price it's gone up by some
130 percent 37 since the start of this
year so that's a pretty decent
performance and with most of the gains
coming in the past few months so I asked
Chris Jones from the consultant's
Catalyst whether as far as strategy is
concerned has Elon Musk got it right
right
so far I'd say Yes
um you know he dropped prices
significantly a few months ago that
caused Panic amongst its competitors
um especially in China and other kind of
major markets and you know even a small
change in its price has had a very big
big effect on demand and we're seeing
that in the last couple of quarters
where it's consistently shipping over
400 000 new vehicles every quarter now
so it's um it's got the best selling car
in the world in the model y it's the
best-selling EV in the major markets and
as I said the best-selling car in the
world which is pretty amazing
do you think it still has the wow factor
when Tesla first came to Market it
really did it almost had a cult
following but now with so many really
good offerings from from the other big
car makers Around The World Isn't it
losing that
you're right it's been a few years now
since the model 3 launched that was over
seven years ago seven or eight years ago
even the model y was first delivered
over three years ago so it's been a
while since it launched a new vehicle a
new car cyber truck is coming in the US
but that's pretty niche in terms of you
know the overall Market but yeah there
is more than there's more competitors
out there now there are much better EVS
out there to to compare against the
Tesla but still it's delivering it's
able to be very efficient in its
production it's ramped its production
around the world with more facilities
and it puts pressure on the competitors
by the tops prices just quickly Elon
Musk has been promising for years full
autonomy that's one of his key goals he
said in this last earnings call that
he's going to spend more than a billion
dollars over the next year on his new AI
training Hardware again your thoughts on
that uh move on his part
yeah it's coming it's been it's been
slow progress really in the in the move
to full full autonomy we still have to
have hands on the wheel eyes on the road
when driving a Tesla so it's been a slow
process and I think they've under
delivered in that area over the year
over the years they've certainly
promised a lot more than they've been
able to deliver so far but every vehicle
on the road is learning every vehicle on
the road has sensors cameras and they're
learning from how people drive and
they're collecting data every mile
that's driven so they're making progress
but it has been slow over the years
0 Comments