Electric car making companies are trying to make sure that customers get innovative cars but Tesla Inc that company which is far ahead in this competition. Last year was good for Tesla since it managed to finish the production of Tesla Model 3 also made the right amount of profit. However, the company faces a considerable problem of cash reserves and slow production rate. Elon Musk already said that company has very few amounts of cash reserves which might be able to run the company for only ten months.
Experts think the biggest problem for Tesla is that it’s still searching for its market. Tesla has been making cars for a semi-luxurious market because many people can’t even afford Tesla electric cars. Tesla’s production has declined a lot this year, and Elon Musk said that he wants to achieve a target of producing more than 90000 per quarter. However, that target of producing such a higher number is still not possible because the company had to lay off many of its staff to survive in the long term. Musk is trying to achieve the target by worming very hard, but experts think the delivery of cars might not be the solution.
Tesla needs to make sure that they are earning the right amount of money from selling cars and one of the most excellent ways they can do that is by producing luxurious vehicles where they get a higher amount of profit margin. The market has already shown that customers are ready to take a small number of deliveries, but what they want is consistent services. Tesla needs to focus on making cars with a continuous basis every quarter; otherwise, big companies like GM or Ford are already entering into EV market.