Tesla is now the most valuable automaker in the world, with their stock trading above $1000 a share. But the news lately hasn’t painted the greenest picture of their future. They’ve slashed prices across the board due to falling demand. And they’ve been having trouble ramping up production of the Model Y. So why, despite all this, is TSLA doing better than ever?
Hype
While Tesla is currently facing challenges due to the global pandemic, there is a lot of optimism for the future. Tesla’s expansion into the Asian market has gone well, and their market share continues to grow in the region. It looks like Tesla is on track to dominate what could be the world’s largest EV market, just like they did in Europe and North America.
There is also a lot of hype around Tesla’s upcoming battery day. Elon said it would be a very important day in Tesla history. And CATL’s recent announcement of their million-mile batteries has just built onto that hype. They’ve shown where the future of battery technology is headed. And people are patiently waiting to see what the EV industry leader has in store.
But the biggest factor is actually an EV startup named after the same person as Tesla, Nikola. They’ve been around for a while, promising to bring electric semi-trucks to the world. But when they went public on Monday they were a hit with investors, and their value soared up to overtake Ford.
Elon saw a prime opportunity to hitch a ride on this hype train. So in a company-wide email last night he stressed the importance of bringing the Tesla Semi to production. He said they will begin deliveries of the Semi in 2021. Nikola stock did drop a bit after it’s rush, but not by much.
It seems like investors see electric semis as a very safe bet. And there is reason to believe that electric semis could become a much larger industry than electric commuter vehicles.
With global climate regulations tightening every year, there is a lot of pressure to clean up the trucking industry. Trucking is one of the world’s largest sources of emissions, but we don’t have a way to fix that yet. But once electric semis are commercially viable, it’s very likely that government regulations will aggressively push the industry towards electric options.
Let’s just hope that Elon is actually serious about bringing the Tesla Semi to production this time.
We hope you enjoyed reading! Let us know your thoughts in the comments down below. And make sure to follow our social media up top for all the latest electric vehicle news!
