Record Deliveries Drive Tesla’s Expansion Plans to Appeal to Everyday Buyers

Tesla Inc. is expected to announce record deliveries for 2023, driven by loyal Elon Musk fans and early adopters of electric vehicles (EVs). The company now aims to broaden its appeal to everyday buyers who prioritize price and convenience. Despite surpassing its delivery goal of 1.8 million cars, Tesla’s numbers pale in comparison to industry behemoths like Toyota and General Motors. The company faces challenges in winning over this new market segment, including consumer caution due to inflation and high interest rates, concerns about safety and charging infrastructure, and growing competition from other EV manufacturers. Tesla also faces a potential blow as some of its models may lose the full federal EV tax credit due to stricter battery-component sourcing rules from China. Tesla attempted to break into the mass market in 2023 by reducing prices, particularly in China. However, it is likely to be overshadowed by Chinese manufacturer BYD Co., which has a more recent and diverse lineup of EVs. Despite these hurdles, Tesla has made efforts to boost sales by revamping its Model 3 sedan, introducing a sleeker design and longer range. The company is also rumored to be planning the release of a new version of the Model Y from its Shanghai plant. Tesla’s marketing efforts are expanding as well, with ventures into Google ads and increased visibility for executives such as design chief Franz von Holzhausen and vice president of vehicle engineering Lars Moravy. Overall, Tesla still holds a strong position in the global EV market, but new challenges lie ahead as it strives to reach the next wave of potential customers.