It is undeniable that electric autonomous vehicle (EAV) manufacturer Tesla is on top of its game. Just recently, his company has posted a record-breaking performance this second quarter of 2020. Now it is the most valuable automaker in the United States (US). But how the company did was able to rise to this level of success.
Read on as we hop on to memory lane and go back to simpler times.
It was way back 2002, yes, almost two decades ago. Disney released its feature film Lilo and Stitch which received critical acclaim and cult following. Kelly Clarkson wins the first edition of the American Idol competition. And the same year we saw Taiwan officially join the international body World Trade Organization. Elon Musk, who just pulled out his earnings from selling his stake in PayPal to eBay, decided to invest it in several companies. One of which was Tesla, which wasn’t known for car manufacturing during that time.
Electric vehicles (EVs) are not a new thing in the market. It has been around in the ’90s but it didn’t gain much traction in the market due to the limitations of battery technology during that time. American multinational company, General Motors, launched its EV1 model, however, it only has 100 miles of range per charge.
Learning from the EV1’s technology and working it out to improve the science behind it, Tesla released its first-ever car product, the Roadster. Though the company didn’t sell a lot of the model, the earnings where enough to warrant revenue and give the company a chance to build and work on their newest design. The Model S, which was released way back in 2012, was produced with the help of a loan granted by the Department of Energy and equity investments from companies Toyota and Daimler.
Later on, in 2015, the company released its Model X SUV. He priced it higher compared to the earlier model to be able to carry on to the next stage of his plan – to make cheap EVs for the public.
This opportunity comes in Model 3 when it hit the market in 2017. According to the latest figures, the car forms the majority of the company’s sales, totaling more than a quarter-million every year.
With the Model 3’s proven success, Tesla decided to push the envelope further by launching the Model Y just last year. It is seen to address the growing market of crossover-type SUVs in the country. The company plans to outsell its previous model with this newest iteration.
What’s next for Tesla?
These moves have definitely sent ripples to the car manufacturing community. Other companies followed suit, offering their EV models to compete with Tesla.
However, this doesn’t rattle the company for it is a part of the company’s massive game plan. Showing that the market for EAVs is possible, they force several manufacturers to hasten their move to alternative energy sources for their models.
The lower number of emissions will eventually slow down the dire effects of global warming which is one of Elon Musk’s personal advocacies.
It is worth noting that transportation and energy generation are the two biggest factors contributing to high emissions of greenhouse gases. Greenhouse gases are emitted by vehicles, factories, etc. which damage the Earth’s ozone layer. Higher concentrations of these gases lead to a correlational increase in temperature.
It seems that all things are set for Musk’s grand plan to bear fruit in the future. According to a report by Matthew DeBord in the Business Insider, Tesla is seen selling millions of its EVS annually with it beating its rivals. However, if we look in the greater picture, Tesla could be singlehandedly lead the push to increase the market share of EVS in the total car market. The report projects it from a measly 2% today to more than 50% by the next decade.
All eyes are set on the company. Let us all observe closely on what direction Elon Musk wants to steer the company and the whole industry in general.