Tesla could cut the sale of some of its models for not being able to meet the demand. What effects could this controversial measure have?
Tesla is one of the main companies related to the electric car market. It was, without a doubt, one of the forerunners of this new way of understanding mobility. Thanks to the incorporation of a set of batteries and electric motor, autonomy has been significantly improved, one of the classic problems that had always accompanied to this technology. Without a doubt, we are facing a strategy that will be studied in business schools.
However, not everything is clear within the company. To the well-known quality problems of the company, we must add a problem that has been getting worse as new models have appeared. The success of the Model 3 is unquestionable, but the problem has occurred after the launch of the Model Y, a vehicle that sits on the same base as the sedan in order to obtain an SUV to use. The demand for these vehicles has been shot.
This, over the months, seems to have been solved, but the problems derived from the pandemic, the lack of chips and the difficulties in opening its last production plant in Berlin, have caused Tesla is in a situation of extreme difficulty. Can we be before the last example of successful death? It is expected that such an extreme will not be reached, but everything seems to indicate that the company would give up generating part of its orders due to not being able to undertake them on time.
A certain confusion is coming within the company. High demand is essential for achieve viable billing levels, but in the case of Tesla, this is, perhaps, too much. This has been confirmed by Elon Musk, CEO of the company. Apparently, the delays already add up to several months, something that could seriously harm the strategy set by the company some time ago. In fact, plans like the Cybertruck or the Roadster could suffer the consequences of the current situation.
A business model whose offer is not capable of assimilating the volume of demand
According to information from Mashable, the maximum exponent considers the current levels of demand ridiculous. Orders continue to be delayed and, despite this, the volume of new purchase requests does not stop. This is what would be leading the top management to a cancellation of new orders until new order. Imposing this measure would imply that a vehicle of the brand could not be acquired during a certain period.
The production delays are involving units from across the Tesla lineup, but unevenly. While the acquisition of a Model 3, Model S or Model X can take more than half a year for the order to be fulfilled, a Model Y in its Performance version could arrive in Spain in just a few weeks. This is what the Berlin factory has, a strategic enclave for be able to meet a growing demand in Europe. Be that as it may, the consumer is demanding more and more new models from the company and the lack of access can ruin the reputation of the brand.
Demand outstrips production ridiculously. We may stop taking orders for a period of time. Elon Musk, CEO of Tesla.
It is unknown which models could be canceled in terms of orders. In fact, it has not been specified which would be the versions that would be threatened in case of making this decision. It should be noted that the Palo Alto company has access versions in the case of Model 3, Dual Motor alternatives, that is, with all-wheel drive due to the incorporation of an electric motor on each axle and other more aspirational ones, as is the case Plaid and Performance.
Not even price increases have stopped the number of orders
The increase in the cost of production due to inflation, the rise in energy prices or, of course, the increase in the cost of raw materials, forced the company to considerably raise the price of its models. This, however, has not had the expected effect on demand, which seems to continue to maintain its plans to purchase this type of car. This drastic decision is which would reduce the volume of demand.
Well, what implications this controversial measure may have over the next few months if confirmed? A clear consequence that we could see in the market would be a notable increase in the units present in the second-hand market. This is a phenomenon that is already being observed in the industry, since delays in orders is something that is happening at a general level in the automotive market. In the case of Tesla, however, there would be an even higher price increase.
It should be remembered that Tesla is perhaps the only manufacturer capable of improve the characteristics of your vehicles once they have left the assembly line. The improvement of the updates, in some cases, allow to increase the autonomy or, simply, the benefits of their vehicles. This, of course, translates into an increase in its value, something that is reflected in the units on the second-hand market.
Related topics: Motor