The year 2023 is set to be an exciting one for Tesla and the electric vehicle (EV) industry. With Tesla’s stock price plummeting over 70 percent in the past year and a number of ambitious projects on the horizon, it looks like this could be a defining moment for the EV company and its competitors.
In this article we will explore what lies ahead for the titans of the EV industry in 2023, from new products to potential pitfalls. We’ll also look at some of the headwinds Tesla is facing both domestically and abroad. So buckle up – it promises to be quite a ride!
Tesla’s growth prospects
In 2023, Tesla will continue to grow as a company and be an innovative leader the automotive industry. This growth will be largely due to the continued efforts of CEO Elon Musk, who has been instrumental in Tesla’s success thus far. Under Musk’s leadership, Tesla has developed groundbreaking technologies that helped popularize EVs in America and across the world.
In addition, Musk has overseen the expansion of Tesla’s manufacturing capabilities, which will allow the company to meet increasing global demand for electric and hybrid vehicles. In 2022, Tesla sold 1.3 million vehicles, up from 936,000 during the prior year, while sales growth climbed 40 percent over the same period.
In the UK, EV sales surpassed that of diesel-powered vehicles in 2022 for the first time with Tesla’s Model Y topping the sales list among electric-powered cars, only trailing the Nissan Qashqai and Vauxhall Corsa in best overall sellers.
Looking beyond 2023, Elon Musk and Tesla have big plans. One major goal is to make electric vehicles less expensive for mass-market consumers. To this end, Tesla is currently working on developing cheaper batteries that can store more energy. Once these batteries are available, they could potentially help reduce the cost of electric vehicles by up to 30 percent.
Tesla is also planning to expand its product line beyond cars to include mass transportation vehicles, such as buses and possibly airplanes, as well as pickup trucks and motorcycles.
A look at Tesla’s potential impact on the automotive market
On July 1, 2023, Tesla will have been in business for exactly 20 years. There are a number of potential developments that could have a major impact on Tesla and the automotive market as a whole this coming year.
Here are three things to watch for:
1. A newly styled, cheaper Tesla model
Tesla’s first SUV, the Model X, was met with mixed reviews when it launched in 2015. Some praised its unique design and impressive performance, while others criticized its high price tag and lack of practicality. The 2023 base version starts at $122,400 and features 670 horsepower on a battery that will last approximately 350 driving miles.
With the launch of the cheaper Model Y in 2020, Tesla attempted to win over more mainstream buyers. The 2023 version sells for just under $70,000 and a full battery charge will allow the car to drive up to about 330 miles.
Tesla may try to continue this trend in 2023 by announcing the launch of a third generation model in March with a rumored price tag as low as $25,000. Speculation also persists Tesla’s new model will either be a full-size van, minivan or “Robotaxi”, the latter serving as a self-driving mass transportation vehicle that features an ultra-efficient battery lasting up to a million miles.
In December 2022, Tesla began U.S. delivery of its electric-powered semi truck that can drive up to 500 miles on a single battery charge, potentially cutting transportation costs by more than half for trucking company owners. Expansion of the battery powered cabs into the Canadian market is expected sometime in 2023.
2. Slower Chinese market growth
China, the world’s largest manufacturer of EV vehicles, is expected to slow production in 2023. Beijing ended its EV and battery subsidy program Dec. 31 after being in effect for 12 years — a move expected to drive down EV sales by up to 60 percent through February.
Tesla opened its first offshore factory in Shanghai in 2019 and has become one of China’s top electric and hybrid vehicle sellers. EV manufacturers in China, which saw a 114 percent increase in year-over-year output in 2022, are expected to increase vehicle delivery by only 30 percent in 2023.
Total projected EV revenue in China for 2023 is $180.5 billion, according to online data portal Statista.
3. Autonomous driving
Waymo, an EV company owned by Google parent Alphabet, has deployed the most sophisticated self-driving commercial vehicle fleet on the road today. The company uses geofence mapping technology for their ridesharing business which is fully operational in both Phoenix and San Francisco. The company is currently in the process of testing in Los Angeles.
Another autonomous ride-hailing service, Cruise, is currently operating full-time only in San Francisco, but has also expanded to Phoenix and Austin on a smaller scale. Both Cruise and Waymo’s fleets are considered “Level 4” autonomous vehicles.
Not to be outdone, Tesla plans to roll out a “Level 5” fully autonomous self-driving vehicle with a sophisticated AI system that does not require geofencing, like the “Robotaxi”, which may debut as early as March. Tesla’s ridesharing vehicle will not be limited in where it can travel, unlike Cruise and Waymo, which are preprogrammed to drive only on roads or in areas defined by a GPS fleet tracking device.
Current self-driving Tesla models require drivers stay fully engaged with the vehicle’s driving features to ensure safety, known as “Level 2” autonomy as defined by SAE International. Despite the relatively low level of AI, Tesla is still marketing its vehicles to buyers as “Full Self-Driving” in violation of a new California law which prohibits falsely advertising such features on partially automated cars.
Navigating technological advances: What’s next for Tesla?
Technological advances are constantly happening and Tesla is often at the forefront of these changes. They were one of the first companies to popularize electric cars and now they are working on self-driving technology. It seems like every year there is a new announcement from Tesla about some amazing innovation that they are working on.
One thing that we can be sure of is that Tesla will continue to be a leader in technological advancements. They have already shown us that they are not afraid to take risks and push boundaries. With their work on self-driving cars, it seems likely that in 2023 we will see even more progress in this area. We may even see fully autonomous Teslas on the road by 2024!
With the continued success of their electric passenger vehicles, as well as new projects such as the Cybertruck and Robotaxi, 2023 is shaping up to be an innovative year that could see significant advancements in the automotive industry and begin to reshape the way we travel in the future.