Tesla to rethink strategy, broaden appeal after record sales in 2023, go beyond EV enthusiasts

Tesla is expected to report yet another record year for deliveries in 2023, surpassing its goal of delivering 1.8 million cars, driven by the unwavering support of Elon Musk enthusiasts and tech-savvy early adopters. However, to sustain its growth trajectory, the Austin-based electric vehicle manufacturer is now targeting a broader consumer base. Analysts surveyed by Bloomberg estimate that Tesla delivered nearly 483,200 vehicles in the fourth quarter, indicating a successful year for the company. Despite achieving unprecedented delivery figures, Tesla’s numbers still pale in comparison to industry giants like Toyota, General Motors, and in case of EVs, BYD Motors. For its next phase of expansion, Tesla aims to appeal to everyday consumers, focusing on factors such as pricing and ease of use. Chief Financial Officer Vaibhav Taneja emphasized this shift during an October investor call, acknowledging the necessity to reach the next wave of EV adopters, as per a report by Bloomberg. However, Tesla faces several hurdles in this endeavour, including consumer caution due to inflation and high interest rates, lingering safety concerns, and the availability of charging infrastructure. Additionally, the company contends with an expanding market of alternative EV options beyond Tesla. Starting January 1, some Tesla models are anticipated to lose the full $7,500 federal EV tax credit due to stricter battery-component sourcing rules from China. Despite these challenges, Tesla took steps in 2023 to break into the mass market by reducing prices across its lineup, particularly in China, where competition is fierce. While the company’s newest vehicle, the Cybertruck, has yet to reach volume production, Tesla aims to boost sales with revamped models and potential releases, including a redesigned Model 3 and a new version of the Model Y from its Shanghai plant. Tesla is facing scepticism from several analysts, as Bloomberg reported, who question the sustainability of demand amid an ageing product lineup and increased competition. Others, however, remain optimistic about Tesla’s future, citing the Cybertruck’s appeal and increased visibility of key executives in marketing efforts. Despite challenges, Tesla can maintain a strong position in the global EV market alongside major players like BYD. Tesla’s plans for 2024 and beyond remain uncertain, but the company is poised to leverage its brand and innovations to navigate the evolving landscape. (With inputs from agencies)