A car maker or a technology company, what is Tesla's core identity?

Recently, this information has emerged in an analytical report of The Economist.

 

Most of the people who like or use Tesla cars identify this electric car manufacturer as a technology company. For this reason, the share, income and other related economic structure of the world famous Tesla is not like that of a car manufacturing company, but its price decline is seen in the world market like a technology company or a software firm.

Dennis Wang, a Tesla fan and owner of a Cybertruck in Los Angeles, said he never sees Tesla as a car manufacturer. Rather, he considers it a full-fledged technology company.

 

The reason for this concern, he said, is that every electric car manufacturer offers almost the same experience. The only difference between Tesla and them is the software or artificial brain of the car under the dashboard. The latest version of Tesla's autonomous driving technology is, in his words, "absolutely amazing."

 

But this can only be called technology-based praise. Since 2018, Kenna Wang has been a shareholder in the Tesla company's investment market. The company's shares are down nearly 40 percent this year and despite declining car sales as per latest reports; Dennis Wang fully trusts Tesla only for Elon Musk's technology-driven thinking.

 

The picture is similar for most Tesla car owners and well-wishers, not just Wang, the report says. All of them are evaluating this car maker purely from a place of technical confidence.

 

A more in-depth discussion of this argument is featured in the Wall Street Journal. A recent announcement by Tesla reflected the hopes of its investors. Their hope is that Tesla will one day earn huge amounts of money for its artificial intelligence (AI). 

As a result, the investors of the shares will also benefit at that time. But for the time being, they think that the company should increase the sale of more cars at a lower price. Tesla is following suit with its latest announcement, which has already sent the company's shares up 10 percent.

 

Meanwhile, China is gradually gaining a better position in the market in terms of selling electric cars. Even in terms of sales volume, the country is faring better than the US market. One of the reasons for this is the 'low price, high sale' policy.

 

However, to beat China, Musk has made a new announcement about his goals. He said Tesla will sell 20 million cars a year by 2030. 1.8 million in sales in 2023. But even behind this huge desire, Musk has tied his investors to the lust of new cutting-edge technology. Musk said the full-self-driving (FSD) technology is so advanced that no one can fully understand Tesla until it's used.

Tesla has already procured a large number of AI chips for this state-of-the-art FSD technology. With this technology, Tesla will be able to increase its sales of electric cars at a large rate and those concerned are also hoping that a huge change in the global market is possible.

 

But since all of this is technology-dependent, one question that arises for everyone is whether Tesla can be evaluated as a car maker as well as a technology company! According to many, the answer must be 'yes'. Because technology is more prominent in the main specialty of Tesla cars.

 

However, the Economist report says, this question will depend entirely on the market context in which Tesla is being 'argued'.