EV Charm: No Effect of Coronavirus on Tesla’s Business

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  • Tesla is aiming to manufacture 4,000 EV sedans per week at its China facility
  • A report highlighted that gross margin of China-produced Tesla Model 3 is very close to the model manufactured in the United States
  • The company manufactures and supplies electric vehicles (EV) as well as batteries for the same
  • Tesla has not entered the EV or the solar roof market in India yet

The coronavirus outbreak and following lockdowns seem to have had no effect on United States-based EV maker Tesla. The company has reported revenues of $5.95 billion during the first quarter of 2020 (Q1 2020). The quarter, as per Tesla, was its best in the last 18 months!

“In Q1, we reached our highest ever revenue for a seasonally slower first quarter as our total revenue grew 32 per cent year-on-year (YoY)” read Tesla’s Q1 2020 report.

Aiming to manufacture 4,000 EV sedans per week in China

Tesla is aiming to manufacture 4,000 EV sedans at its China factory by the mid of 2020. The company has been able to maintain supply for the components required to build Tesla Model 3 at its Gigafactory located in Shangai, China.

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A recent report published by a leading China-based newsportal mentioned that the gross margin of China-produced Tesla Model 3 is very close to the model manufactured in the United States. As a matter of fact, Tesla might soon announce price cuts for its Model 3 sedans sold in China.

The company has recently appointed Hiromichi Mizuno as an independent director to its board. Mizuno was working as the chief investment officer of the Japan Government Pension Investment Fund till March 2020.

Tesla’s solar roof business

Tesla, apart from being an EV developer, is also in the business of solar roofs in America. The company had recently hit the mark of producing 1,000 solar roofs within a week’s time in its home country.

While the company is facing problems in the installation speed of solar roofs, Tesla’s Elon Musk has made it clear that it will not collaborate with any companies for the same.

“I’m confident that maybe by the end of the year, we may be installing about a 1,000 a week,” Musk said during a investor call. Tesla CEO also noted about the demand of solar roofs in China.

EV market in India

The EV market, as per a report by Markets and Markets, is projected to reach 26,951,318 units by 2030 from an estimated 3,269,671 units in 2019. The EV market in India, as per a BIS report, is anticipated to grow at a robust CAGR of 43.13 per cent during the forecast period from 2019 to 2030.

“The government target for 30 per cent adoption of electric vehicles by 2030 will be majorly driven by the electrification of two-wheeler, three-wheeler, and commercial vehicles. Lower rate of adoption of electric vehicles in passenger vehicle segment is expected to have a limited impact in achieving the targets,” said an BIS Research expert,

It is to be noted here that only a handfull of players have launched EV models in the country. Tesla has not entered the EV or the solar roof market in India yet.

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