Elon Musk is confident that Tesla can sell all of its electric vehicles

Tesla CEO Elon Musk is confident in Tesla’s ability to sell all electric vehicles it produces. Elon Musk’s answer to this was given in a recent interview financial times Interviewer Peter Campbell during financial times Automotive Future Summit. Campbell’s question was about Elon Musk’s purchase of Twitter and the effects it could have on Tesla. Campbell said:

“People will automatically associate you with Tesla and you with Twitter. Is there any danger in your mind that the actions you will take on Twitter, which you have freely admitted to, will upset some people, and potentially have a commercial impact on Tesla?”

Elon Musk said he was confident Tesla would sell all the cars it produced and that the problem wasn’t demand, but production capacity.

“I’m confident we’ll be able to sell all the cars we can make. I mean, right now, the Tesla order lead time is ridiculously low. Our issue isn’t demand. It’s production.”

Campbell noted that this is due to global supply chains and a shortage of semiconductor chips, and added that he expected demand for electric vehicles to go through the roof. Elon Musk shared more about consumer demand and how it affects Tesla. He even brought up the possibility of not taking orders for anything beyond a period of time due to the high demand for Tesla EVs.

“Even before supply chain issues arose, Tesla’s demand exceeded production. So now its demand exceeds production to an absurd degree. It’s actually possible that we will limit — just stop taking orders for anything beyond a certain time period because some time it will be like, after a year .

“The frustration we’re seeing for customers is that they can’t get a car; they’re not willing or interested in buying a car. Basically, I don’t think it’s about demand generation and so much about production, engineering and supply chain.”

Evidence of high demand for Tesla

Not only are Teslas in great demand right now, but even used Teslas are seeing higher prices. InsideEVs He noted that ratings of used Tesla models not only track price increases for new models, but the long waiting time of a new Tesla vehicle is a major factor. The latter is what drives new car buyers to the used car market. The article used data from Recurrent, which began tracking used car prices in April 2021. The data also shows that price increases for the Model S were higher than for the Model 3.

to me direct carsThere are even instances of used Tesla models being more expensive than new ones. According to their Southern California research, a 2020 Model Y performed with 24,288 miles priced at $81,100. By comparison, the new Performance Model Y starts at $69,190. The article also features comparisons between the Model 3 and the Model S. According to the article:

2021 Model S Plaid with just under 4,000 miles costs $146,200. Current Model S Plaid is $137,190. 2016 P90D AWD with 33,295 miles costs $77,900. New Model S. […] It costs $101,190.”

If this sounds familiar, it is because it is. In February 2022, I wrote this article about how used Tesla EVs are selling in China at a higher cost than new cars out of the Shanghai Giga. The used car market in China is clearly benefiting from a shortage of semiconductor chips and supply chain issues, and this has been reflected in the unusually high prices of used Teslas vehicles there. Three months later, we’re now seeing this ripple effect here in the United States.

Elon Musk also raised demand and production during Tesla’s Q1 2022 earnings call last month when he answered a question about price hikes.

“Actually, on the price increase front, I have to mention that it may seem like we might be irrational about increasing the prices of our cars, given that we had a record profit this quarter, but the waiting list for our cars is very long. And some of the vehicles that people are going to order, the list stretches Wait until next year.

“So the vehicle prices that are being ordered now really anticipate the cost growth of the supplier and the logistics that we know and we think will happen over the next six to twelve months. That’s why we have price increases today, because in some cases the vehicle ordered today will arrive in some cases a year from now. So we have a very long waiting list. And obviously we are not ordering limited. We are limited production. Very limited production.”


 


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