Tesla is always known to be ahead of time with its class-apart advanced technologies and innovations in the automobile business. This company made it to the Top 10 list of the World’s most innovative companies in the Boston Consulting Group’s (BCG) 13th annual report. In fact, this was the only automobile and energy company among all other IT, software, and electronics based companies. Tesla is widely known for its revolutionary ideas which play along the lines of environmental rules and incorporate the use of AI (Artificial Intelligence) in its automobiles. With the push and support of Elon Musk, this company entered the business of electric cars when emissions from vehicles was a major threat to the environment, and the use of AI when no one else was focussing on it, making them more advanced in these terms. Their competitor such as Porsche is just at the onset of the AI world and their strategy doesn’t fully focus on AI as Tesla does. Tesla’s main focus is to continuously work open and improve their AI system and successfully launch an improved automated self-driving car by 2019. There are many challenges that they will face on this journey.
Elon Musk recently visited China to finalize a plan to build the Shanghai Giga factory, which is the first foreign-owned factory, for the manufacturing of an affordable version of Tesla Model Y and 3. The estimated cost is said to be around 2 billion USD with the objective of producing 3000 Model 3 automobiles per week. The Model Y was unveiled around in March’19 and is expected to begin its production by 2020 on a similar platform such as the Model 3. However, this factory’s area is approximately 6% of their Gigafactory 1 in Nevada.
Tesla has a huge customer base in China in spite of the tension between the US and China. As a matter of fact, the sales from China were so high that Tesla faced a 13% dip in its revenues as they had to import all the cars to China. However, Tesla expects this problem to be resolved once the Shanghai Giga factory is fully running. With the highest sales in the year of 2018, the growth trajectory of Tesla has slightly dampened with disturbances in stock prices. The growth and future of Tesla are greatly dependent on the Model 3 that will be produced once the Shanghai Giga factory is in an active condition, with maximum sales expected from European countries and China as well.
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