In the past few weeks, there have been increased discussions about demand. Therefore, in this post, I would like to list 5 reasons why Tesla will not have a demand problem in 2023.
1. electric car vs. Incinerator
The market for electric cars has grown significantly in recent years. Despite the strong growth, we are still in the midst of change. In this transition to electric mobility, we haven't even started with the existing fleet. So far there is only one country that has managed to achieve a share of over 90% electric cars in new cars and that is Norway.
So if we still take the potential worldwide, Tesla should continue to grow here in 2023
Tesla has, as already mentioned in another blog post, raised prices so that demand falls. This has allowed Tesla to not extend the waiting times beyond 12 months and at the same time to earn more money with each individual customer. This effect worked very well until the end of 2022. The lower demand that arose as a result is purely due to the higher price. A price reduction for some variants is possible in China and Europe in 2023. In the USA, on the other hand, there is a new promotion. Tesla will have no problems finding enough customers with the existing prices.
In summary, a price reduction for China and Europe means only a return to normal prices and reaching the groups of buyers lost to the price increases.
3. New Markets
Tesla has so far mainly supplied Europe from Shanghai. In 2023 it is to be expected that it will then only be the Tesla Model 3. Markets such as Japan and Australia have only been supplied to a limited extent so far. Entry into the Thai market shows that there is still a lot of scope in the entire Asian region. The current production of approx. 22. 000 cars per week in Shanghai should therefore easily be enough for China, Europe and all other markets in Asia.
4. New Products/Refresh
There have been rumors of a Model 3 refresh for the past few weeks. The last update was more than 2 years ago and would do the Model 3 good. The Model Y has already received many new updates through the production in Austin & Berlin. There is speculation here about a new LFP battery. Should Tesla dare to announce a refresh here in 2023, a great deal of interest can definitely be expected.
New products have already been announced and, like the Cybertruck, will finally go into production in 2023. The astronomical order numbers of almost 1. 5 million should be treated with caution. Many have placed multiple orders here. However, it can be assumed that approx. 500k orders have been placed by individual customers. This number would last until 2025 to fill production and this without any new orders.
5. EuropeIn Grünheide we see the beginning of what will be an absolute record year in 2023. The British market is currently still being supplied from China. This market is the second largest after Germany in terms of sheer number of items. The Model Y is very popular here. A further increase in production in Grünheide will enable Tesla to deliver the Model Y car to England in 2023.
The current capacity in Grünheide is 500 in total. 000 cars a year if everything in the existing building is exhausted. This corresponds to a weekly production of approx. 9600 cars. Tesla will go into 2023 with a production of 4500 cars. Despite all the challenges in Europe with high electricity prices and lower subsidies, it can be assumed that Tesla will continue to grow.
ConclusionThe above points show relatively well that Tesla will continue to grow in 2023. Of course, external factors can still change here, which have a negative impact on this growth. If demand falls for other reasons, however, Tesla will lower prices with the high yield they generate per car.
Leave a comment