Tesla success sparks plans for major production increase, new car focus, and significant investment in Electronic Vehicles battery manufacturing to increase product output.
The electrified car company announced a positive result at the end of Q4 2022.
The company has redeemed its ability to meet targets, which resulted in a reported US$24.3bn in revenue for the final quarter of the year. This amounts to a 30% increase in comparison to the same period of the previous year.
As a result of this success, Tesla CEO, Elon Musk has declared further growth in sales is to be expected in 2023, citing the potential for 1.8 million sales this year.
As many companies have experienced, Tesla has experienced the after effects of COVID-19, which played havoc with the company’s supply chain. However, the outlet seems to be bouncing back having navigated supply chain issues and, by the end of 2022, had delivered its first Semi trucks to the consumer goods corporation—Pepsi.
This announcement of growth in Tesla production and projected sales has major implications for the procurement of parts – especially relating to its batteries – which some analysts have described as unsustainable.
Despite the increase in Tesla’s sales, the company is having to make way for other carmakers entering the Electronic Vehicles space, such as General Motors and Ford—from the traditional automotive side.
Much of the cost reduction in the production of these cars will come from Tesla’s plans to make its own batteries and reduce the price of each one to build.
With Tesla’s share of electric car sales amounting to around 17.4% in 2022, other car manufacturers are likely to ramp up their efforts in order to uphold their share of Electronic Vehicles business.
