Elon Musk-led Tesla Zeroes in on Everyday Buyers After Winning Over Electric Vehicle Lovers

tech.hindustantimes.com:

Tesla Inc. is expected to say on Tuesday it had another record delivery year in 2023, in large part due to die-hard Elon Musk fans and tech-savvy early adopters. Now the company is working to widen its appeal. The Austin-based electric vehicle (EV) maker is estimated to have handed over almost 483,200 vehicles in the fourth quarter, according to analysts surveyed by Bloomberg. That means Tesla probably exceeded its goal to deliver 1.8 million cars last year, an all-time high for the company but just a fraction of what Toyota Motor Corp. or General Motors Co. normally sell.

For its next phase of growth, Tesla has to win over everyday buyers, who primarily select vehicles based on price and ease of use. “When you look at car buying in general, we're trying get to the next set of EV adopters,” Chief Financial Officer Vaibhav Taneja said during an investor call in October.

The Musk-led company faces a number of hurdles to reach that crowd: Inflation and high interest rates have made consumers more cautious about big purchases. Additionally, plenty of buyers still wonder about safety, and if there are enough charging stations. Those who do decide to make the switch from gasoline-powered cars also have an ever-expanding pool of EVs to pick from, besides Tesla.

In another challenge, on Jan. 1, some of Tesla's models are expected to lose the full, $7,500 federal EV tax credit thanks to stricter battery-component sourcing rules from China. The company's website says some versions of the Model 3 will be affected.

Tesla took some steps to break into the mass market in 2023. It slashed prices across its lineup, sacrificing profit margins for volumes. The markdowns were especially pronounced in China, the market where Musk has said it's