There is a company called the brand that opened the era of the electric vehicle. I think the majority of readers will be able to come up with an easy answer. It is Tesla, the protagonist of the day. Although Tesla made a unique move in the electric car market, electric car models are pouring out not only from Tesla but also from various brands.
In fact, the recently released Hyundai Ioniq 5 is setting a pre-contract record that far exceeds this year’s target sales as soon as it is released. However, in the midst of that, the news that Tesla is experiencing a low sales volume is a hot topic. The stock price situation is also not positive, but what is going on? Today’s AutoPost Issue Plus takes one more step into what’s happening’now’ to Tesla.
Written Editor Jeong Ji-hyun
In the automotive market
The person who innovated
Tesla is called a so-called’innovative company’, breaking the stereotypes about electric vehicles. He is also the one who shakes the history of the automobile market by releasing high-performance electric vehicle models with significantly improved design and mileage.
In Korea, Tesla is also very popular. Tesla’s entry-level electric vehicle Model 3 was launched in Korea in November 2019, and has sold a total of 12,000 units until last year. This can be seen as an unusual blast considering that consumers had to order directly online without offline branches, and there was no marketing to do so.
All-time performance and design
By the way, is the defect also a record-breaking degree?
However, there was a dark cloud of quality problems on the road ahead of Tesla, who only knew how to be prosperous. Even some voices are concerned about the collapse of the Tesla kingdom due to the poor quality of Tesla vehicles. Tesla was included in the survey for the first time in the world’s most authoritative quality survey’JD Power New Car Quality Survey’ for the first time last year.
However, Tesla was hungry by ranking 32nd, the lowest among the 32 companies surveyed. Complaints received in the new car quality survey are usually related to painting, body panel step, and noise, but consumer complaints about driving performance were often found.
In addition, quality problems related to safety are serious in some cases of accidents. In fact, in December of last year in Korea, an accident occurred in which the owner of the Model X was not rescued and died in the car. This is because the power supply to the vehicle was cut off due to the impact of the accident, and the door handle that protruded until it touched the electronic key did not work.
1st place is returned
Sales this year are terrible
Along with the continuing quality problems, there was another news that caught consumers’ ears. That is the problem of low sales volume. Currently, Tesla is continuing its poor performance due to a shortage of imported supplies. Sales in March are also expected to be in jeopardy as there is a possibility that the plant operation may be disrupted due to the recent shortage in supply and demand for automotive semiconductors.
What about the domestic sales volume? Only one was sold in January, and only 14 were sold in February. The trend of Tesla’s slowing down was also caught in overseas markets, and in fact, it gave Volkswagen the No. 1 position in the European electric vehicle market last year. Even as an individual model, Renault’s Joe was the most sold electric car in the European market last year. In the United States, Tesla’s share from 80% last year fell below 70% earlier this year.
The reason for the low sales volume?
1. January and February are usually low season
So, why is the sales volume so low? The first reason lies in the timing. In general, Tesla brings in deliveries at the same time on a quarterly basis, such as March, June, and September. Therefore, Tesla sales over a period of time tend to jump sharply compared to other months. In fact, Tesla sales in March, June, and September last year were 2,499 units, 2,827 units, and 2,056 units, respectively, accounting for 62% of the 11,826 units sold last year.
In other words, more than half of Tesla will come in in three months. In addition, among them, January is the time when the delivery of vehicles is carried over as the previous month is carried over, and the subsidy policy is not even implemented during the off-peak season. However, even taking this into account, many opinions say that the sales volume decline is significant. In fact, 122 units were sold in January and 1402 units in February last year. This is a very contrasting performance to this year’s sales.
2. The emergence of a competitive model
Tesla can’t do it either?
In addition, Hyundai Ioniq 5 was released in Korea. Although this model suffers from a short drive range, it has nevertheless demonstrated a remarkable pre-contract record of 35,000 units with several advanced specifications and future-oriented design. Thanks to the Ioniq 5, which has achieved enough results to keep Tesla in check, some responded, “It doesn’t seem easy for Tesla to increase sales in Korea right now.”
There are many electric cars on the market that can actually replace Tesla overseas. As we saw earlier, Volkswagen already showed a market share that surpassed Tesla. In response, many consumers are adding an analysis that “Tesla has been a dominant brand in the electric vehicle market up until now, but it seems that it is difficult to show superior sales volume and market share as there are more competitive models.”
Stocks plunge and rebound
Is in infinite repetition
The stock plunge caused by Elon Musk’s sudden action is also pointed out as a problem among investors. Until now, one of the main drivers of Tesla’s box office was Elon Musk’s aka’Man Power’. Musk enthralled investors and consumers with a grand vision, but his sudden actions made him gobbled up several times.
In fact, as Musk’s smoking cannabis was revealed, the stock price fell 9%. In addition, last year, when Musk tweeted “I personally think Tesla’s stock price is too high,” the stock price plummeted 10%, evaporating a market cap of $14 billion.
Until the so-called’bubble controversy’
Tesla’s current address
As such, Tesla’s stock price has repeatedly rebounded and plunged, and this time it is shaking the hearts of investors, not automobile history. In fact, on January 26, Tesla’s stock price, which soared to $883, fell to $563 around March 8. As a result, the controversy over the’Tesla bubble’ rises above the water and is a hot topic.
Compared to the end of January, when the record high was recorded, the stock price of the new stock plunged more than 30% in just five weeks. During this period, the market cap of Tesla evaporated to more than KRW 285 trillion in Korean Won. However, the stock price rebounded sharply on the 9th. This is analyzed to be due to factors such as a decline in US Treasury yields and sales volume performance in China.
As competitors jumped into the same market, as many netizens were concerned, Tesla is being shaken by a strong wind. In fact, Volkswagen, which has surpassed Tesla and ranked first in the European electric vehicle market, is expecting to surpass Tesla among experts. Ioniq 5 has already been released in Korea, and next-generation electric vehicles such as the Kia EV6 are expected to be released.
What are consumers’ opinions on Tesla’s current situation? Some commented, “It is true that Tesla is the leader, but as the number of competitors increases, it seems that we will have to be nervous.” In addition, some consumers say, “If you look at the level, it is almost the level of home-made work. “I think I should work hard,” he added, adding advice that we need to develop know-how to make’cars’ rather than’electric cars’. It was Auto Post Issue Plus.
[email protected]