Tesla Continues to Increase Numbers and Drive Innovation Into the Future

By Thomas Price Wednesday, October 21, 2020

As the transition toward cleaner energy continues to push forward, the rise of electric vehicles has moved on a steep trajectory. Of the electric vehicles available for purchase by the general public, there is no bigger name in the industry currently than Tesla. While the COVID-19 pandemic has caused a decline in sales almost across the board, Tesla has continued to prosper even as their own sales saw slightly lower numbers. This can be attributed to the aggressive communication and action by CEO Elon Musk, who recently tweeted new updates for what can be looked forward to in the future. At the same time, in order to incentivize a boost in sales, the company has slashed prices on a series of different models within the Tesla lineup. So, what do the tweets of Musk and the reductions in prices mean for the company as a whole, and what can be expected in the future?

Elon Musk’s Newest Tweets

On October 8th, Elon Musk replied to a series of questions on Twitter, which provided an interesting insight into what could be in the near future for the company and what new developments are in store for the cars. One of the points was related to Tesla’s Full Self-Driving technology, which Musk confirmed would be able to drive in locations that it has not previously seen. Musk went on to soft-announce that the beta for Tesla’s full self driving software will be released in the coming weeks. Following the announcement, there was mention of the snake auto-coupler charger, confirmed by Musk as happening, which he then goes on to say would make the summoning of Tesla’s self-driving cars completely possible between states. While obviously, Musk did not provide specific details into any of these plans beyond simply a few short tweets, hearing directly from him gives many people hope that all of these remarks are fully factual and in the mix for the company sooner rather than later.

Tesla Price Drops

In the meantime, over the course of the day on October 13, several different models of Tesla cars had their prices lowered in the United States and China. In the US, Tesla’s Model S saw its price drop by 4%. The Model S saw cuts in China as well, where the price fell only slightly less to land at 3% lower than previously listed. Both of these drops are added to the price cut already seen earlier this month for the Tesla Model 3, which had an 8% reduction. These lower prices could possibly be seen as an attempt to make a few more sales before the company’s quarterly report comes out on October 21. With the company’s initial January projections of delivering over 500,000 cars by the end of the year remaining unchanged, Tesla would need to deliver a record-setting number in order to achieve this. Despite what appears to be traces of anxiety, Tesla has continued to see its stock go up even as revenues declined.

Tesla in 2020

While especially as an automotive company, it would be near impossible to not see at least a slight decline in revenues in 2020. Tesla has so far made it through the year with only modest losses. In their most recent quarterly report, Tesla earned $6.036 billion, which, while still a decline from the same quarter in 2019, was only a relatively modest decline of 4.94%. At the same time, despite the dip in overall revenue, Tesla saw their gross profits for the quarter increase compared to 2019’s quarter. Tesla earned $1.267 billion, which marks a whopping 37.57% increase in its gross profits. Year to date, Tesla’s stock has reflected that with an unbelievable 433.85%.

Final Conclusions

Tesla has ridden a tumultuous year to record-high stock prices and record-high profits. In the meantime, new technological innovations seem to be on the horizon. While the company has behaved erratically and certainly unorthodox in some sense, Tesla continues to lead the way for all-electric vehicle companies. With Q3 reports looming in the near future and 500,000 projected deliveries by the end of the year, Tesla still has high bars to reach.

About the Author

Headshot of Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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