«Oh my God, the Tesla thing is going to be terrible, it can’t go well when its main manager and the representative figure are dedicated all day to Twitter and involved in lawsuits of all kinds, they are going to be the worst results of his history… ”
Tesla presents results for the last quarter of last year and shows a 12% increase in its profits, a turnover of 24.3 billion and an annual profit of 12.6 billion dollars, all of this selling more vehicles than ever (1.3 million, with growth in manufacturing at 43% per year) and exceeding analyst forecasts. Earnings per share have been $1.07, compared to $0.68 last year. Is any other car company presenting something similar?
All this in a terrible year for the industry, with brutal problems in the supply chain, stoppages of many factories, problems in China due to the zero COVID policies and difficulties in obtaining microprocessors and other components. In a year like this, Tesla has not only done well but has even cut prices significantly, which is resulting in much higher demand during this first month of 2023. This year, the company’s idea is to manufacture two million vehicles, although it does not want to compromise that number due to the significant instability factors that could affect production capacity.
I don’t know, maybe what Elon had to do is just get a little distracted. I said it at the time: managerial attention is a myth. That a manager of a company has to spend all his time dedicated to it, when he has demonstrated his ability to create a company different from the rest of his industry – that is, to break the dreaded isomorphism – and has managed to turn it into a technological and ideological leader Absolute is simply not understanding anything. Tesla, like any company run by Elon Musk, is completely focused on achieving increasingly significant economies of scale, which means that once the processes are in place, the need for immediate and close management supervision is minimal. Now, analysts say that Tesla is going to do well, and the company, which has had its best week since 2013, announces that it is going to emphasize cost reduction. Because? Because it is what economies of scale and learning have.
The same people who criticized Tesla when it didn’t make money now criticize it because its CEO is busy with other things, when the company produces more and more vehicles, keeps opening factories like there’s no tomorrow, and maintains margins well above the average. from the rest of your industry. What else did they say? Oh yes… that their vehicles were “badly built” and “failed a lot.” How interesting, isn’t it? Normally, when these things happen, the vehicles of a brand tend to sell less, not more, we know, word of mouth, and stuff. I don’t know how to reconcile that with more and more Teslas being sold and their owners becoming more and more satisfied …
In the year 2022, the company has been able to make more money than ever before, but some are still “terribly worried.” Maybe it’s that they want Elon to be walking around the factory every day and giving hugs and patting his workers on the shoulder…
(Image Credit goes to: Mumuksh Verma
Innovations that Tesla developed at the time, such as selling directly and through the network, are now imitated by an industry that has been forced to move towards the manufacture of electric vehicles precisely because of what this company has managed to do. With Tesla, a company that was nothing more than an opportunity that was found, Elon Musk has drastically influenced the evolution of the entire automobile industry, to the point that today he not only leads it in market capitalization but practically marks their destinations.
Those who said that Tesla’s technological leadership would disappear when traditional brands began to manufacture electric vehicles with adequate dedication find that the vast majority of brands already have a significant and growing number of electric vehicles in their catalogue, but they continue to either distracted by the lie about hybrids, or manufacturing electric vehicles that still look too much like the internal combustion vehicles of the past, that do not take advantage of the change in the propulsion system, or that do not understand the role of a microprocessor in a car. Abandoning a whole way of doing and considering things is difficult.
And let’s not forget: if more electric vehicles circulate in a city, in a country or the world, that’s good, very good. That Tesla, the main player who has finally made the car industry evolve towards the electric vehicle, doing well, is good for everyone.
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