Tesla is aiming to become a leader in power, AI and robotics and autonomous vehicles.
Elon Musk, CEO of Tesla, is focusing the business on innovation and diversification as they continue to develop artificial intelligence, robotics and autonomous cars with advanced driver assistance systems.
His vision for developing Tesla is similar to the evolution of mobile phones. He states the automotive industry is transitioning from something like the “flip phone” era of cars to “smart cars.” Smart Cars is a term already popular among Chinese EV manufacturers. It emphasises an increased role for automated cars, vehicle technology and advanced vehicle intelligence in the future of car manufacturing.
It is the artificial intelligence (AI) in the vehicles and within the network through Tesla HQ that will radically change mobility around the world for driverless cars to work. Tesla’s shift in focus towards AI and automated driving systems, which Musk believes will redefine the company’s identity, will take it from a car maker to an AI and robotics company.
The Strategy
Tesla’s strategy also includes introducing a more affordable vehicle. They hope to accelerate the production, starting as early as this year. This will be constructed using a mixed platform of current and next-generation technologies. This likely differs from their original plans of completely new manufacturing facilities.
The planned vehicles will be manufactured on the same lines as Tesla’s current models. Without a need for new production facilities, Tesla’s streamlined operations mean it can manage costs more effectively.
Despite Tesla’s recent challenges, its shares saw a significant rise after Musk’s announcement. This reflects investor optimism about the company’s strategic pivot. Optimism is tempered by some caution though, given Tesla’s history of delays in rolling out new products and technologies. Global EV sales continue to be under pressure as many carmakers now prioritise hybrids over EVs.
Tesla is also making significant strides in another key aspect of the environmental shift, energy management. This is becoming a major player in the delivery and storage of power across the United States.
Tesla’s electric vehicle chargers are becoming increasingly popular. Its large-scale batteries, which store renewable energy for households and communities, are also on the rise. Profits from Tesla’s energy sector have surged by 140% compared to last year. Musk has stated that this part of the business will expand much faster than the automotive sector.
The Future
Tesla’s future might lean more towards energy utility, rather than a traditional automaker. This shift underscores Tesla’s transformation into a multifaceted company at the cutting edge of technology.
Tesla’s plan also includes a vision for fully autonomous cars and a self-driving vehicle fleet. Tesla will not only own and operate vehicles but also host privately owned cars on a driving technology network run from Tesla HQ.
Information researched for this article from Cleantechnica, Bloomberg and Reuters. You can read more about Tesla in our post here.
