Elon Musk, chief executive of electric car maker Tesla, stressed in a recent interview that demand for its cars remained strong during the outbreak, thanks to a surge in online orders and a surge in efficiency. Musk said Tesla’s online ordering process, which allows consumers to avoid the hassle of going to dealers to buy cars, could help the company maintain healthy demand for cars during the outbreak. “Throughout the outbreak, we’ve seen strong orders,” he said. “
Tesla’s booming philosophy is that all of the company’s cars are offered to any customer at the same price, and they have never been interested in negotiating with demanding car sales representatives.
To keep the pressure and uncertainty of buying new cars at an all-time low, Tesla uses an online ordering process and a direct-to-consumer sales process. The technology is being used to remove any anxiety that car buyers may have when dealing with salespeople and negotiating new car prices.
Mr Musk added: “We make the buying experience very easy. You can buy a Tesla in two minutes by visiting our website. I guess people don’t like to go to a dealer’s place for a test drive or hang out in a place like the lobby. “
It appears that the technology boosted Tesla’s sales figures throughout the outbreak. The outbreak has led to the closure of many Tesla showrooms, forcing car buyers to either delay buying cars or order them online.
Demand appears to be a daunting challenge for many carmakers in the first half of this year. When people lose their jobs or pay less, the demand for cars falls sharply, and car buyers are reluctant to spend their money on new cars, or they are unwilling to risk their health to buy a new one.
The efficiency of Tesla’s online ordering process and the relative lying less pressure have helped the electric car maker stay ahead of the curve. Tesla’s second-quarter deliveries fell about 5 percent from a year earlier, while most other automakers plunged more than 30 percent.
In a comfortable buying experience, Musk also said Tesla was able to stay successful throughout the outbreak because the company only loved its cars more than traditional manufacturers. The addition of video games, in-car entertainment, Easter eggs and autonomous technology has all helped the company succeed in tough times.
Demand for Tesla vehicles is clearly not slowing. In the second quarter, the company delivered 90,650 cars, the model 3, the world’s most popular electric car in June.
Tesla also confirmed that it will open a new superfactory plant in Austin, Texas, to produce the popular electric pickup, the CyberTruck, and the Model Y, which will be delivered in eastern North America.
Tesla and China.
In the interview, Musk bemoaned Americans’ “self-righteous” and “complacent” character and praised Chinese’s “smartness and diligence.” “In my opinion, China has given me a lot of shock,” Musk said. People there are smart and hard-working, never complacent, and what I’m seeing in America is growing complacency and self-righteousness, especially in the San Francisco Bay Area, Los Angeles and New York. “
In 2019, the Chinese government helped Tesla secure a loan worth about $1.6 billion to help it build its Shanghai plant and electric vehicle production facilities. This year, the local government helped the Tesla plant in Shanghai quickly resume normal operations after the local government imposed extensive quarantine measures and halted Production.
Tesla has opened a new factory in Shanghai after seeing a surge in Chinese demand for its Model 3 sedan. The company also recently hired workers in Shanghai to boost production and is preparing to produce a new Model Y crossover SUV there.
In the interview, Musk also compared the U.S., California and New York to sports teams that are about to lose their winning status. “When you always win, you take everything for granted,” he said. The United States, especially california and New York, you’ve won too many games. Like professional sports teams, they become complacent after winning titles several times in a row and then start losing games. “
Tesla and the United States.
Musk said that of the U.S. auto companies, “Tesla has the least government support of any car company.” He also mentioned Tesla’s early repayment of a loan from the U.S. Department of Energy.
In June 2009, the Obama administration’s Department of Energy gave Tesla a $465 million loan to build a car assembly plant in Fremont, California, and begin production of its flagship all-electric model S. Tesla repaid its loans and interest in May 2013, nine years ahead of schedule.
The U.S. Department of Energy’s loans are small compared to tarP loans to bail out General Motors and Chrysler during the financial crisis that began in 2008. However, Tesla has also benefited from other forms of government aid in the United States, amounting to more than $4.9 billion.
Tesla’s government support in California includes more than $220 million in sales and use tax exemptions from the California Bureau of Alternative Energy and Advanced Transportation Finance, as well as the state’s zero-emissions car and solar renewable energy credits. The sale of these regulatory credits has been a major factor in Tesla’s earnings over the past four quarters.
It follows reports that New York State is spending $959 million to build a solar panel plant in Buffalo, now run by Tesla, in an effort to create more than 1,000 high-paying technology and manufacturing jobs in the state.
But so far, Tesla has not fulfilled its employment obligations in New York. Tesla has received a one-year extension from the state government to meet hiring requirements, according to a financial filing released this week. If not, Musk’s electric vehicle and renewable energy joint venture will have to repay $41 million to the state government.
In the interview, Musk also celebrated the fact that Tesla is now considered a “legitimate” U.S. and multinational automaker. Although the company has been an upstart and loser, Musk said the market will eventually resolve on its own when asked why Tesla’s share price soared in 2020.
Tesla’s shares have risen more than 240 per cent since the start of the year, making it the world’s most valued carmaker. He added that investors would be happy if Tesla could make a good car. If you produce a bad product, your customers will be unhappy, and then your investors will be dissatisfied.