New competitors are also coming. This year, General Motors is set to begin production of electric versions of its Chevrolet Silverado pickup and Chevrolet Blazer and Equinox sport utility vehicles.
Tesla has too Problem in China, its largest market, where a local manufacturer, BYD, is now the No. 1 electric vehicle brand. Tesla recently cut prices in China and reported a Total Global Sales to 2022 This was lower than analysts’ expectations.
While Tesla is still praised for the advanced technologies installed in its cars and their sleek styling, Tesla has been slow to add to its model line. It only offers four vehicles, and the two luxury models are out of reach for most mainstream consumers. It last launched a car in 2020, when the Model Y went into production.
Starting in 2019, Tesla promised to introduce a pickup called the Cybertruck, but delayed its production several times. The company now hopes to launch it this year. The Cybertruck has an angular, futuristic design and is expected to be sold as a luxury vehicle, which will reduce its appeal. In the past, Mr. Musk has expressed interest in building an electric car that could sell for about $25,000, but he hasn’t laid out any formal plans.
In December, Tesla began delivering a limited number of battery-powered semi trucks to its first customer, PepsiCo.
“We see demand issues remaining until Tesla introduces lower-cost offerings in 2025, which will probably only be in 2025,” Bernstein analyst Tony Sacconaghi said in a statement this month.
Tesla has indicated that it is willing to concede some profit in lowering prices of its current models to increase sales volume. The company typically shows gross profit margins of 26 percent — double that of some rival automakers — which has led investors to bid up its shares, making it the world’s most valuable car company.