New competitors are also on the way. This year, GM should start producing electric versions of its Chevrolet Silverado pickup and Chevrolet Trailblazer and Equinox sport utility vehicles.
Tesla has also run into trouble in China, its largest market, where local manufacturer BYD is now the number one supplier. 1 electric car caught fire. Tesla recently lowered prices in China and reported global sales totals for 2022 that fell short of analysts’ expectations.
While still being praised for the advanced technology and sleek styling incorporated into its cars, Tesla has been slowly adding to its model lineup. It offers just four models, two of which are luxury models most mainstream consumers can’t afford. The last time it launched a car was in 2020, when the Model Y entered production.
Tesla has promised a pickup called the Cybertruck since 2019, but has delayed production several times. The company now hopes to start production this year. The Cybertruck has an angular, futuristic design and is expected to be sold as a luxury vehicle, which may limit its appeal. In the past, sir. Musk has said he wants to produce an electric car that will cost about $25,000, but he has yet to make formal plans.
In December, Tesla began delivering a small number of battery-powered semi-trucks to its first customer, PepsiCo.
“We think demand issues remain until Tesla can roll out lower-priced products in volume, which may not be until 2025,” Bernstein analyst Toni Sacconaghi said in a note this month.
By lowering the price of existing models, Tesla is willing to give up some of its profits to increase sales. The company typically shows gross margins of 26% — more than double that of some rival automakers — a factor that has led investors to bid up its shares, making it the world’s most valuable car company.