Tesla unveiled its Model S Plaid at an event yesterday. The high-end electric car would be pitted against other luxury models.
The Model S and Model X are among the oldest models in Tesla’s portfolio. The company didn’t produce them in the first quarter of 2021 because it was working on revamping the models. Although the S / X models are considered the most profitable models for Tesla, their share of total shipments has gradually declined even as sales of the more affordable Model 3 and Y increase.
Tesla launches the Model S Plaid
The Model S Plaid has a range of 390 miles and can accelerate from zero to sixty miles per hour in just two seconds. The specs make it Tesla’s fastest car. The company also increased the price of the model and it would now start at $ 130,000. The model was originally scheduled for delivery in February but was delayed.
“We’re in production and going to deliver the first 25 cars now, and then basically we should be down to several hundred cars a week soon and a thousand cars a week next quarter,” Tesla CEO said. , Elon Musk.
Tesla increases vehicle prices
Notably, Tesla has had to increase vehicle prices several times this year amid rising input costs. Prices are rising due to significant pressure on supply chain pricing across the industry. Commodities in particular, ”Musk said in a tweet in response to the price hike.
He also took other cost-cutting initiatives and removed the lumbar support from the Tesla Model Y. According to Musk, “the lumbar displacement was only removed in the front passenger seat of 3 / Y (obviously not. on the rear seats). The logs showed almost no use. Not worth the cost / mass for everyone when hardly ever in use.
Input costs rise
Higher input costs could hurt Tesla’s profitability. Despite millions of dollars earned each quarter from carbon credit sales, Tesla’s net profit margin was only around 4% in the March quarter. By the way, if we removed the carbon credits and Tesla’s $ 102 million gain on bitcoin sales in the quarter, the company would actually have recorded a net GAAP loss in the quarter.
Musk has championed the cause of electric cars. Until about two years ago, electric cars were considered a fad. Traditional automakers didn’t see much value in electric cars and had a few electric models in the portfolio for the namesake.
However, things have changed over the past couple of years and now every automaker is focusing on electric cars. General Motors is committed to a zero-emission future by 2035. Other automakers have also presented aggressive plans to electrify their fleets.
At the event to reveal the Model S Plaid, Musk said, “There is something pretty important to the future of sustainable energy, and that is that we have to show that an electric car is the best car, hands down.
Tesla Model S vs. Mercedes EQS
Tesla Model S would compete with high-end electric cars. Mercedes will start delivering the all-electric EQS model later this year. There is something that is quite important for the future of sustainable energy, is that we have to show that an electric car is the best car, hands down ”,
Additionally, Lucid Motors would begin delivering its Lucid Air later this year. The model would be opposed to Tesla’s Model S. In addition, NIO would also launch its premium electric cars in the United States in the future. The Chinese electric vehicle maker is entering the Norwegian market, its first market outside of China.
Tesla canceled Model S Plaid plus
Speaking of Tesla Model S, the company decided to discontinue the high-end Plaid + model because the checkered model “is so good” according to CEO Elon Musk. The Plaid + model was to have a range of 520 miles.
Meanwhile, competition is intensifying in the electric vehicle industry. On the one hand, we have established a pure game electric vehicle companies like Tesla, NIO, Li Auto and XPeng.
We also have a flurry of young electric vehicle companies that are currently in the pre-production phase. However, over the next couple of years we will have a lot of new all-electric models from these companies.
In addition, traditional car manufacturers like Ford, General Motors and Volkswagen have raised their level. All-electric models from legacy automakers were well received in the market. Last on the list is the Ford F-150 Lightning Model which has received very good reviews. The ICE (Internal Combustion Engine) model was the best-selling pickup in the United States for the past few years, and the new all-electric model looks set to wage a fierce battle against other electric pickups. Canoo also announced a pickup truck. Tesla’s Cybertruck would also be available next year.
Apple is also reportedly working on its own electric car which would be launched around 2025. However, so far the company has not been able to partner with any companies for the project, although it has been reported that it was in talks with Hyundai and Renault.
Tesla shares on the rise
Tesla stock was trading slightly higher in the US pre-market price action today. Tesla and other EV stocks have slumped this year even as shares of historic carmakers have surged.