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Tesla is banking on a major Q1 push to secure its biggest year yet

(Credit: Tesla)

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Tesla is banking on a major push for sales in the first quarter of 2023 in an attempt to secure what will likely be its biggest year to date.

In the past, Tesla has routinely depended on end-of-quarter and, most importantly, end-of-year sales pushes to reach goals.

However, the company has adopted a new strategy for 2023 to achieve production and sales goals, and it is willing to do it at all costs.

In its Q4 and Full Year 2022 Investor Shareholder Deck, Tesla stated it would accelerate its cost reduction roadmap, sacrificing its high-profit margins for an accelerated production rate and increased sales:

“In the near term we are accelerating our cost reduction roadmap and driving towards higher production rates, while staying focused on executing against the next phase of our roadmap.”

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Tesla put its money where its mouth was by reducing prices significantly in early January across many markets, most notably in China and the United States.

In the past, Tesla has used strategies like discounts, free Supercharging, and other incentives to drive sales, and this is one of the rare instances that it is using practices at the beginning of a quarter to drive sales.

Tesla technically missed its 2022 delivery targets, set at 50 percent growth year-over-year. After delivering 936,172 cars in 2021, Tesla would have technically needed 1,404,258 deliveries last year to reach its production goal. The 1,313,851 vehicles delivered in 2022 put Tesla just under 100,000 units short of its goal.

The automaker is pulling out all the stops to keep pace with its production goals, including driving demand upward with price reductions. Its 1.8 million vehicle target for 2023 will require 4,932 cars to be built every day, which, in reality, is feasible. With Shanghai and Fremont running at full capacity, and rumors of the California plant expanding, Tesla is already well on its way.

Additionally, Berlin and Texas are both ramping up production, and the Cybertruck will contribute some volume in Austin. However, CEO Elon Musk confirmed the pickup’s volume production phases will not begin until next year.

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Tesla Cybertruck to enter limited production this Summer

In reality, Musk may be wanting more. On the Earnings Call, he said Tesla might be capable of more than 1.8 million units:

“Well — OK. I mean, our internal production potential is actually closer to 2 million vehicles, but we were saying 1.8 million because, I don’t know, there just always seems to be some freaking force majeure thing that happens somewhere on earth. And we don’t control if there’s like earthquakes, tsunamis, wars, pandemics, etc. So if it’s a smooth year, actually, without some big supply chain interruption or massive problem, we actually have the potential to do 2 million cars this year.”

The commitment to increasing demand and sacrificing margins through price reductions is a key indicator that Tesla is willing to get 2023 off to a hot start, instead of waiting until the tail end of quarters. While demand already seemed relatively healthy, the price cuts improved Tesla’s addressable market, especially with its Model 3 and Model Y mass-market vehicles.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Elon Musk

Tesla says it is working on rides for the handicapped and disabled with Robotaxi

Tesla CEO Elon Musk confirmed that this was a focus by responding, “Absolutely,” to the embedded post on X above. Tesla said it is developing its own “wheelchair-accessible vehicle,” also known as a WAV. 

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Credit: Teslarati

Tesla says on its Robotaxi app that it is working on enabling “accessibility rides” that would give the handicapped and disabled the ability to hail a Robotaxi to get to an appointment.

While Robotaxi will obviously revolutionize the way we travel for our work commutes, daily activities, and other things, but there is true potential to enable serious change for those who cannot drive.

Autonomous transportation would make life easier for those who are unable to obtain a driver’s license. Of course, with today’s ride-sharing platforms, things are much easier than they once were.

However, rides from Uber and Lyft, while plentiful, always have an opportunity to be unavailable in some regions, especially rural ones, due to a lack of drivers.

Robotaxi aims to solve this problem through autonomous transportation, a technology that Tesla has been developing for years.

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However, new language in the Robotaxi app shows that Tesla is working on a solution for people who need rides for medical reasons, and it uses a picture of the Robovan to hammer this point home:

Tesla CEO Elon Musk confirmed that this was a focus by responding, “Absolutely,” to the embedded post on X above. Tesla said it is developing its own “wheelchair-accessible vehicle,” also known as a WAV.

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This is likely the Robovan, which was unveiled on October 10 at the Robotaxi event last year:

Tesla unveils the Robovan at ‘We, Robot’ event

It is pretty interesting to see two Musk ventures working on solutions for those who are physically impaired or have other disabilities. With Tesla, Robotaxi will unlock immense potential for those who are unable to drive themselves, addressing a genuine need in today’s world.

Additionally, Neuralink is continuing its development of technology to fight against various physical and mental disabilities. A great question to ask is, “Which will be more beneficial for humans?”

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Cybertruck

Tesla gives big hint that it will build Cyber SUV, smaller Cybertruck

“Those are definitely things we’ve considered. Wait & see is probably the best way I can answer that. We’re working on so many innovative & fun things.”

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Credit: @ApexRedPanda

Tesla appears to have given a significant hint that it plans to build two highly anticipated and requested vehicles: the Cyber SUV and a smaller Cybertruck. This potentially indicates that two new cars could be added to the lineup soon.

For some time, Tesla fans have been requesting two things: a true SUV and a more compact Cybertruck. The SUV has been on the minds of fans and owners for some time, as Tesla does not currently build a full-size SUV that competes with vehicles like the Chevrolet Tahoe or Ford Expedition.

Tesla’s longer Model Y did not scale back requests for this vehicle type from fans

Meanwhile, the compact and smaller Cybertruck has been teased for years, especially since the all-electric pickup seems to be a viable option for international markets; however, its size does not seem ideal for the tight roadways in other regions.

Lately, there have been more hints than ever that Tesla is finally considering these two vehicles. It’s all but confirmed, but Tesla has always left breadcrumbs for fans to find and speculate over.

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In an interview with Bloomberg, Tesla Chief Designer Franz von Holzhausen said that the company has considered these two vehicles for its lineup, but he would not give a definitive “yes” or “no” regarding their development:

“Those are definitely things we’ve considered. Wait & see is probably the best way I can answer that. We’re working on so many innovative & fun things.”

Recently, the speculation regarding the Cyber SUV has been well-fueled, as a recent promotional video Tesla released seemed to show a mock-up design hiding in plain sight:

Credit: Tesla

Interestingly, Tesla said in a regulatory filing early this year that it would not adopt the Cybertruck’s stainless steel exoskeleton for new vehicles. However, it could still launch a design inspired by the Cybertruck, but using different materials.

As far as the more compact Cybertruck design, this would enable fans in Europe and Asia to purchase the all-electric pickup.

There have been concerns from a regulatory perspective in some countries outside of North America, as the sheer size and sharp edges have caused some concern for other governments:

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Tesla Cybertruck gets pushback in Europe, increasing need for ‘international’ version

However, back in 2019, just after the Cybertruck’s unveiling, CEO Elon Musk admitted that there was a place for a smaller version.

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Tesla Robotaxi is headed to a new U.S. state following latest approval

“Only a trained employee, contractor, or other person authorized by the company can operate or monitor the vehicles.”

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Credit: Joe Tegtmeyer | X

Tesla Robotaxi is headed to a new U.S. state following its latest approval, which was revealed on Friday night.

Tesla has been operating its Robotaxi platform in Texas and California, with Austin being the first city where the company could test a ride-hailing platform without anyone in the driver’s seat.

First launching in Austin in late June, Tesla’s focus has been expanding its service area, its fleet of Robotaxi vehicles, and its rider population, which has grown most recently due to its public launch.

However, Tesla is also filing applications in states where these autonomous driving programs can operate, aiming to expand to all 50 states eventually. CEO Elon Musk said earlier this year that the company should be able to offer Robotaxi rides to roughly half of the U.S. population.

Alongside Texas and California, Tesla recently gained permission to test its Robotaxi in Nevada, marking the third state where it had some form of regulatory permission to perform rides using an unreleased version of the Full Self-Driving suite.

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Tesla adjusts one key detail of Robotaxi operations in Austin

Now, Tesla has gained another approval in a new state, its fourth, marking a significant step in its expansion across the U.S.

In Arizona, Tesla gained regulatory approval to begin testing autonomous vehicles on public roads.

The vehicles in Austin and the Bay Area of California both use what Tesla has been referring to as “Safety Monitors” in the cars. During city operation in Texas, the Safety Monitor sits in the passenger’s seat. When the route takes the car on the highway, the Safety Monitor jumps into the driver’s seat.

Tesla explains why Robotaxis now have safety monitors in the driver’s seat

In California, the Safety Monitor is always in the driver’s seat.

In Arizona, Tesla will also utilize what a communication said was “Safety Drivers,” insinuating that the monitor would be in the driver’s seat. However, another line in the email states:

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“Only a trained employee, contractor, or other person authorized by the company can operate or monitor the vehicles.”

It sounds as if there is the potential for the Safety Monitor to be in either seat, much like Tesla’s process in Austin. However, this is currently unconfirmed.

The new approval marks a drastic step forward for Tesla as it has received two new approvals in just two weeks. Regulatory hurdles seem to still be the biggest bottleneck for Tesla in terms of gaining permissions to operate in new states, but things seem to be moving along pretty well so far.

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