Inflation, Tesla Price, Tesla Demand and Tesla Future

As inflationary pressure has hit commodities in recent months, the auto industry has struggled to keep investors and consumers happy. Electric vehicle maker Tesla has also not been immune to the effects of inflation, and it remains to be seen how it fares relative to other automakers.

The U.S. new car consumer price index has risen about 15% since the start of 2021, and economists believe new car sticker prices will rise even more with new versions, upgrades, and more. driving assistance and other improvements, depending on Barrons. Car prices for Tesla have risen around 30% for many Tesla models and trims, weeks after CEO Elon Musk said the automaker had had a “difficult quarter”.

To put it into perspective, the average new car that currently costs $40,000 would have cost just $32,000 a year ago. Tesla’s Model 3 has increased in price by around $37,000 to $47,000 since the start of 2021, marking a 27% increase. The Model Y rose about 32% to $66,000, while the Model S and Model X prices increased about 30% with price increases of about $25,000 and $31,000, respectively.

While some investors seem concerned that rising car prices will kill demand for new vehicles, Tesla currently has an order book that spans several months, as can be seen on the automaker’s online order configurators. automobile. Still, that didn’t stop investors from falling in droves. Tesla’s stock was down about 40%, while General Motors (GM) and Ford were both down about 46%.

Above: Average new car prices remain high. (YouTube: CNBC)


Automakers aren’t the only ones to suffer, either. Shares of auto parts suppliers Magna International and Aptiv fell about 32% and 48%, respectively. And despite an economic downturn facing many markets, few have felt the effects as quickly and as firmly as the auto industry.

Total new car sales in May were at annual estimates of less than 13 million units, a level that RBC analyst Joseph Spak called “recessive.” This appears to support investor concerns about falling demand, although Tesla and other automakers are still operating in a new market and electric vehicles are here to stay. Still, some investors may find it’s a great time to buy some low-premium stocks, and many expect Tesla’s stock to have already hit its new low.

Either way, it’s worth noting how much more Tesla is doing in 2022 than just making electric vehicles. Despite being the world’s largest maker of electric vehicles by a few different measures, and despite facing inflationary issues alongside the rest of the auto market, Tesla still has other avenues to follow.

From the development of the Optimus robot, the potential for future robotaxis thanks to its fully autonomous driving system, to its solar power and battery storage, it’s safe to say that Tesla is here for the long haul, and there’s has a case to make for how this could get all of this even further above the EV industry.

Originally published on EVANNEX.
By Zachary Visconti

 

 

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