Tesla (tesla stock) has since formed many partnerships with two large companies such as Toyota and Mercedes to sell the fruits of its technology and know-how. These companies bought California OEM engines and batteries for use in their models in exchange for a portion of the Tesla inventory. While the established partnerships are not aimed at reducing costs or sharing platforms, they do demonstrate that these alternative technologies are more affordable and reliable for the whole market and can be used in mass-market vehicles.
It was designed for that. The importance of low-emission vehicles will increase in the coming years. Europe, North America, China and many other countries have agreed to implement stricter vehicle emissions policy by 2020. There are differences, but the law allows OEMs to go above and below the 2015 allowance. These limits are fined. Mechanisms like the Zero Emission Vehicle (ZEV) program are being implemented in many places outside of the United States, preventing automakers from buying loans from more sustainable competitors.
With an emission-free lineup model, Tesla can capitalize on this influx of other OEMs and continue to grow sales thanks to the relevance the brand has gained in the automotive industry. In addition, environmentally friendly production technology and the sustainability of structures, tunnels and train stations play a fundamental role in tracking emissions reductions. Future series vehicles must meet the standards set by transnational agencies. Because of this, many automakers have agreed to buy low-emission automakers or develop new ones for this purpose. In Tesla’s experience, other automakers are relying on electrical engineering in more expensive vehicles, niche segments (like sports cars), and large SUVs, but also on other types of non-conventional fuels (like hydrogen).
Future of Automotive Industry
For many years, Tesla Motors has shown, model after model, that its brand is built on a solid foundation to protect past successes and shape the future. The automotive industry is dominated by large, large-cap companies, where small and medium-sized companies often offer products for niche markets or serve very narrow segments, while California-based companies have new industry features and technologies that are characterized by their full functionality.
Much of its success (and the success of electric vehicles) has to do with government policies that are seen as future trends in the industry. Since the main segment of car cost is fixed, it is important to increase market share to make a profit. Tesla made a goal of selling 2.5 million cars till 2025. At this position, this seems possible. Hence, in the next 10 years, Tesla Stock can manage to touch $ 10000. You can get the latest information of Tesla at https://www.webull.com/newslist/nasdaq-tsla.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.