New competitors are also emerging. This year, General Motors would begin making electric versions of its Chevrolet Silverado pickup and Chevrolet Blazer and Equinox SUVs.
Tesla has also had trouble in China, its largest market, where a local manufacturer, BYD, is now the No. 1 electric vehicle brand. Tesla recently slashed prices in China, reporting global sales total for 2022 that was below analysts’ expectations.
While Tesla is still lauded for the cutting-edge technologies it packs into its cars, and their sleek styling, it’s been slow to add to its model line. It only offers four vehicles, and two are luxury models that are out of reach for most mainstream consumers. It last introduced a car in 2020, when the Model Y went into production.
Since 2019, Tesla has promised to introduce a pickup called the Cybertruck, but has delayed its production several times. The company now hopes to start making it this year. The Cybertruck has an angular, futuristic design and is expected to be sold as a luxury vehicle, which could limit its appeal. In the past, Mr. Musk has expressed a desire to produce an electric car that could retail for around $25,000, but has not laid out any formal plans.
In December, Tesla began delivering a small number of battery-powered semi trucks to PepsiCo, its first customer.
“We see demand issues remaining until Tesla is able to introduce lower-priced offerings in volume, which may not be until 2025,” Bernstein analyst Toni Sacconaghi said in a report this month.
By lowering the prices of its current models, Tesla is signaling that it is willing to forgo some profit to increase sales volume. The company typically shows a gross profit margin of 26 percent — more than double that of some rival automakers — a factor that prompted investors to bid for its stock, making it the world’s most valuable auto company.
