Analysts believe that Tesla will be making a huge mistake if it fails to launch some models. According to Guggenheim analyst Ali Faghri, Tesla will lose huge revenue in the next 10 years if it can’t launch a $25,000 model on the market. He added “In the mid-2020s, entry into the low-priced vehicle market will be critical to support Tesla’s growth prospects,”
On Wednesday, Tesla’s CEO Elon Musk dismissed the possibility of launching a $25,000 model this year. He said that the company will focus resources on rolling out fully self-driving technology and ensuring higher prices for the likes of the Model 3 and Model Y. He said “We are not currently developing a $25,000 model, but we will develop it in the future. At present, the most important thing is fully autonomous driving technology.”
In a nutshell, despite Tesla’s somewhat disappointing statement on the earnings call, Wall Street bulls weren’t affected. “Our advice to investors is that Tesla remains a must-own stock,” said Morgan Stanley analyst Adam Jonas.
Gizchina News of the week
Tesla multi-billion-dollar camera module attract bids from Samsung & LG
Tesla’s multi-billion-dollar camera module order is attracting the interest of a number of companies. These companies are currently bidding for the deal and we have the likes of Samsung and LG in the long list of bidders. The report out of South Korea claims that the two Korean manufacturing giants are bidding to win orders from Tesla. The report claims that LG Innotek, Samsung Electro-Mechanics, and many other companies are participating in the bidding. The bidding process will be complete in the first quarter of this year.
According to the reports, the Tesla billion-dollar camera module orders will be used for its Model S, Model X, Model 3, and Model Y. The company will be launching these models soon. Furthermore, camera orders for the production of the electric semi-truck and the electric pickup Cybertruck are available for bidders. These models are not yet in production.
However, it is important to note that its 2022 orders will spill into some 2023 products. Thus, the deal is worth a whole lot of money. Usually, the company’s electric vehicle uses eight (8) sets of camera modules. The most expensive cameras are in the front of the vehicle.
LG Innotek and Samsung Electro-Mechanics, which participated in the bidding this time, were the main suppliers of Tesla’s car camera modules before. Among the camera modules purchased by Tesla last year, LG Innotek supplied 60% – 70% while Samsung Electro-Mechanics supplied 30% – 40%. However, Samsung Electro-Mechanics is expected to receive more orders this year as Tesla expects to diversify suppliers to lower prices.