Economics Tesla Ability to Accelerate EV Profitability and Gain More Market Share

Question:-

Do a bit of extra research and provide a commentary on Tesla’s ability to accelerate EV profitability and gain more market share (and demand) in the foreseeable future.

Answer:-

The most common material for electric vehicles are nickel cobalt and aluminum oxides used by Tesla. The lowest cost per energy is obtained from nickel cobalt aluminum oxide. As a result the cost of the battery cell is much lower. In this way Tesla used cost cutting opportunity to increase its cell production. Tesla has innovated lithium ion batteries as a result the price of the battery cell is much lower. As a result the focus is on reducing the cost of electrodes. In order to make the cathode in this way, Tesla has brought various changes which have helped to reduce its cost. The company has changed the battery design by removing its tab.

Thus it can be assume that Tesla will take itself to a better place by 2025 by reducing cost of manufacturing electric vehicles. Tesla’s new Model Y has arrived in the market and Model 3 production in China is much higher than before from which it is expected than more than500,000 car shipped worldwide in 2020. It is expected that Telsa will launch new products in the future and its production will increase further. Telsa company can sell electric car at cheaper price after introducing  Model 3.

Since 2010, the position of Telsa in the car market has started to get stronger. The company has started new production on Shanghai. The company is shipping three new car vehicles in 2020 – the Model Y SUV, the Semi, the New Roadster.

Customer loyalty is another important advantage of Telsa. In that place Telsa has established itself.

For some reason in 2018it seemed that Telsa Company was growing from financial trouble. But Telsa’s Stock sale in 2019 began to rise. As a result, Telsa is again a remarkable car shipping company in 2020s. a lot can be heard about Telsa in negative cash flows. But new three high volume car models make Telsa profitable and profit levels start to rise. As a result Telsa is going to get a healthy return to the car factory.